Question

on dissolution of a firm debtor were rs17000 of these rs500 became Bad and the rest realised 60% which account will be debited and how much amount.

1) realisation account by Rs 16500.

2)profit and losses account by Rs 500.

3)cash account by Rs 9900.

4) Debtors account by Rs 7100​

Answer 1

Answer:

cash or bank a/c dr 9,900

realisation a/c 9,900

Explanation:

out 17,000 debtors 500 were bad so remaining 16,500 these are realised at 60%=9,900 amount we got in cash.

so cash is increasing debit it's an income so credited in realisation a/c

Answer 2

Answer:

The cash account will be debited by 9900.

To find:

The amount and the account to be debited on realisation of debtors.

Solution:

The debtors were for rs.17000 in which 500 became bad.

=17000 - 500 = 16500

Out of this 16,500, only 60% were realisable.

=16500 * 60% =  9900

Thus, the journal entry would be

Cash a/c dr   9900

To realisation a/c   9900

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