CBSE 2026 · Region 1 · Set 1 · Q14

Sid hi, Gyan and Gayatri were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 2$ : 2. On 31st March, $\displaystyle 2025$ their firm was dissolved. At the time of dissolution a debtor amounting to ₹ $\displaystyle 25,000$ whose debt had been previously written off as bad debt paid $\displaystyle 40$% of the amount. The accounting treatment for the above transaction will be :