If A's capital is credit ₹25000 and A is entitled to realisation commission ₹4000 but takes an asset of ₹6000 then what is final balance?

Correct answer: Credit ₹23000

The governing rule is to adjust all items affecting A’s capital account before finding its final balance. A begins with a credit balance of ₹25,000. The realisation commission payable to A is an additional credit of ₹4,000, so the balance becomes ₹29,000 credit. A then takes over an asset valued at ₹6,000; this is debited to A’s capital account because the asset reduces the cash amount ultimately payable to him. Thus, final credit balance = ₹25,000 + ₹4,000 − ₹6,000 = ₹23,000. Option A is correct. Options B and C fail to deduct the asset, while D reverses the direction and gives an unsupported debit balance.