Partnership

Dissolution

Medium

Select the entry that is to be made when a creditor accepts an asset in full and final settlement of his account.

Realisation A/c Dr

To Bank A/c

Bank A/c Dr

To Realisation A/c

Creditor A/c Dr

To Asset A/c

No Entry

✅ Correct Option: 4

When a creditor accepts an asset in full and final settlement of his account, no entry is passed because both the asset and the liability have already been transferred to the Realisation Account, and the settlement is reflected through net balancing.

2025: 14 May Shift 2

The Court may order a partnership firm to be dissolved in which of the following case?

2023: 29 May Shift 2

When a creditor accepts an asset whose value is more than the amount due to him, he will _______ the excess amount which will be credited to _______ Account.

2025: 29 May Shift 2

In which of the following case court can order dissolution of a partnership firm.

2025: 27 May Shift 1

Unrecorded Liabilities when paid are shown in:

2025: 30 May Shift 1

On dissolution of the firm, partner's capital accounts are closed through:

2025: 3 June Shift 2

Arrange the following in correct order in which assets of the firm can be used in the settlement.

(A) Residue shall be divided between the partners in their profit sharing ratio.

(B) In paying the partners proportionately what is due to him/her on account of capital.

(D) In paying the debts of the firm to the third parties.

Choose the correct answer from the options given below:

Select the entry that is to be made when a creditor accepts an asset in full and final settlement of his account.

Solution

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