Question

On the disSolutions of a partnership firm, there were debtors of \rupee34,000. Debtors of \rupee1,000 became bad, and 60\% was realized from the remaining debtors. Which account will be debited and by how much amount on the realization from debtors?

• A. Realisation A/c by \rupee33,000
• B. Profit \& Loss A/c by \rupee1,000
• C. Cash A/c by \rupee19,800
• D. Debtors A/c by \rupee14,200

Hint:

In disSolution, bad debts are subtracted from total debtors, and the realization amount is credited to the Cash A/c.

Answer 1

The Correct Option is C

1. Total debtors = \rupee34,000. 2. Bad debts = \rupee1,000. 3. Remaining debtors = \rupee34,000 - \rupee1,000 = \rupee33,000. 4. Amount realized from remaining debtors = \(60\% \times \rupee33,000 = \rupee19,800\). Thus, Cash A/c is debited by \rupee19,800 on realization.