Question : There were contingent liabilities from B/R received from Ashok for Rs 40,000 and discounted with the bank. Ashok became insolvent, and 75 paise in rupee were received from his estate. How much amount will be debited/credited to realization?

Option 1: Debit Rs 20,000, Credit Rs 15,000

Option 2: Credit Rs 20,000, debit Rs 15000

Option 3: Debit Rs 40,000

Option 4: None of the above

Question : There was a contingent liability of Rs. 37,000 in respect of bills discounted but not matured. All the discounted bills were honoured but an acceptor of a bill of Rs. 5,000 became insolvent and fifty paise in a rupee was received. The liability of the firm on account of this bill discounted and dishonoured has not so far been recorded. The entry will be .

Option 1: Realization account debited Rs 5,000 and credited bank account Rs 5,000

Option 2: Bank account debited with Rs 2,500 and credited realization account Rs 2,500

Option 3: Both 1 and 2

Option 4: None of these

Question : There was a contingent liability of Rs. 37,000 in respect of bills discounted but not matured. All the discounted bills were honoured but an acceptor of a bill of Rs. 5,000 became insolvent and fifty paise in a rupee was received. The liability of the firm on account of this bill discounted and dishonoured has not so far been recorded. The entry will be .

Option 1: Realization account debited Rs 5,000 and credited bank account Rs 5,000

Option 2: Bank account debited with Rs 2,500 and credited realization account Rs 2,500

Option 3: Both 1 and 2

Option 4: None of these

Question : A B/R for Rs.5,000 was received from a customer Mohan and the bill was discounted from the bank. Mohan became insolvent and 60 paise per rupee has been received from his estate. The amount to be paid by the Firm to the bank is

Option 1: Rs 2,000

Option 2: Rs 3,000

Option 3: Rs 5,000

Option 4: None of the above

Question : A B/R for Rs.5,000 was received from a customer Mohan and the bill was discounted from the bank. Mohan became insolvent and 60 paise per rupee has been received from his estate. The amount to be paid by the Firm to the bank is

Option 1: Rs 2,000

Option 2: Rs 3,000

Option 3: Rs 5,000

Option 4: None of the above