Comprehension Passage
Following is the Balance Sheet of Supriya and Monika as on March 31, 2020:
Balance Sheet of Supriya and Monika as on March 31, 2020
| Liabilities | Amount (Rs.) |
|---|---|
| Supriya's Capital | 32,500 |
| Monika's Capital | 11,500 |
| Sundry Creditors | 48,000 |
| General Reserve | 13,500 |
| Total | 1,05,500 |
| Assets | Amount (Rs.) |
|---|---|
| Cash and Bank | 40,500 |
| Stock | 7,500 |
| Sundry Debtors | 21,500 |
| Less: Provision for doubtful debts | 500 |
| Fixed Assets | 36,500 |
| Total | 1,05,500 |
The firm was dissolved on March 31, 2020. Close the books of the firm with the following information:
(i) Debtors realised at a discount of 5%,
(ii) Stock realised at Rs.7,000,
(iii) Fixed assets realised at Rs.42,000,
(iv) Realisation expenses of Rs.1,500,
(v) Creditors are paid in full.
The creditors were paid in full during the dissolution process. Which of the following transactions most likely occurred in relation to the creditors' accounts?
1
Creditors were paid partially at a discount
2
Creditors were paid the exact amount as per the liabilities recorded in the books
3
Creditors agreed to a settlement with a discount
4
Creditors were paid in the form of fixed assets