Question

At the time of dissolution, Harry, a creditor of the firm agreed to take over the furniture of the book value of ₹ 1,00,000 at ₹ 89,000 and the balance in cash in full settlement of his account of ₹ 1,10,000.

Which journal entry will be passed for the balance to be paid in cash?

Options

• Realisation A/c     ...Dr.	35,000
  To Bank A/c		35,000

• Realisation A/c     ...Dr.	21,000
  To Bank A/c		21,000

• Realisation A/c     ...Dr.	11,000
  To Bank A/c		11,000

• Realisation A/c     ...Dr.	15,000
  To Bank A/c		15,000

Answer 1

Realisation A/c     ...Dr.	21,000
To Bank A/c		21,000