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Question
At the time of dissolution of a firm, Debtors were ₹ 17,000 out of which ₹ 500 were not receivable, and the balance realised 60%. Which account will be debited and by how much amount?
Options
Realisation Account by ₹ 16,500.
Profit & Loss Account by ₹ 500.
Cash Account by ₹ 9,900.
Debtors Account by ₹ 7,100.
MCQ
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Solution
Cash Account by ₹ 9,900.
Explanation:
Total Debtors Balance = ₹ 17,000
Less: Bad Debts (Not receivable) = ₹ 500
Remaining Good Debtors = ₹ 16,500
Cash received = `16,500 xx 60/100`
= ₹ 9,900
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