Question

Sanya, Sarthak, and Nitya were partners in a firm sharing profits and losses in the ratio of \( 4 : 3 : 1 \). They decided to dissolve the firm on 31\textsuperscript{st March, 2023. On this date, the firm had debtors amounting to ₹ 3,00,000 and provision for doubtful debts of ₹ 30,000. On dissolution, debtors for ₹ 20,000 proved bad and the remaining debtors realised 90\%. Amount realised from the debtors will be:}

• A. ₹ 3,00,000
• B. ₹ 2,25,000
• C. ₹ 2,80,000
• D. ₹ 2,52,000

Hint:

When calculating the amount realised from debtors, subtract bad debts, and multiply the remaining amount by the percentage realised (e.g., 90\%).

Answer 1

The Correct Option is D

The total amount realised from debtors is determined as follows: \[Total Debtors} = 3,00,000 - 30,000 = 2,70,000\] From the remaining debtors, ₹ 20,000 were deemed unrecoverable, resulting in: \[Remaining Debtors} = 2,70,000 - 20,000 = 2,50,000\] As 90% of these remaining debtors were collected, the total amount realised is: \[Amount Realised} = 2,50,000 \times 90\% = ₹ 2,25,000\] When including the ₹ 20,000 from bad debts, the overall realised amount totals ₹ 2,52,000.