At the time of dissolution, Harry, a creditor of the firm agreed to take over the furniture of the book value of Rs. 1, 00,000 at Rs. 89,000 and the balance in cash in full settlement of his account of Rs.1, 10,000.
Which journal entry will be passed for the balance to be paid in cash?
(a) Realisation A/c Dr. 35,000 To Bank A/c 35,000
(b) Realisation A/c Dr. 21,000 To Bank A/c 21,000
(c) Realisation A/c Dr. 11,000 To Bank A/c 11,000
(d) Realisation A/c Dr. 15,000 To Bank A/c 15,000