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At the time of dissolution, the book value of debtors was ₹50,000 and ₹47,000 was realised from them. What was the loss on realisation of debtors?

Answer and explanation

Correct answer: ₹3,000

Loss on realisation = Book value of debtors − Amount realised = ₹50,000 − ₹47,000 = ₹3,000. Therefore, option C is correct. Since the amount realised is lower than the book value, the difference is recorded as a loss in the Realisation Account. In an exam, subtract the realised amount from the book value when realisation is below book value.

Related tags

Partnership DissolutionRealisation AccountDebtorsLoss CalculationClosing BusinessClosing The BusinessDissolution Of A Partnership FirmAccountancy

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