On the dissolution of a partnership firm, the total book value of debtors stood at . Out of these, became completely bad and unrecoverable, while the remaining balance realized . In this scenario, by what amount will the Bank Account be debited?
- A
- B
- C
- D
Solution & Step-by-step Explanation
To compute the actual cash collection from debtors:Total Debtors:
Less: Bad Debts written off directly:
Amount realized from remaining balance at :
Thus, the Bank A/c is debited with the actual cash received, which is .
Less: Bad Debts written off directly:
Amount realized from remaining balance at :
Thus, the Bank A/c is debited with the actual cash received, which is .