On taking responsibility for payment of a liability of ₹16,000 by a partner at the time of dissolution of partnership firm, which account will be credited?

Capital Account of the Partner

The correct answer is option 2- Capital Account of the Partner.

For a liability which a partner takes responsibility to discharge,the journal entry will be-
Realisation A/c Dr.
   To Partner’s Capital A/c

Now the partner took responsibility for payment of a liability of ₹16,000. So journal entry will be-
Realisation A/c Dr.   ₹16,000
   To Partner’s Capital A/c    ₹16,000

This journal entry shows the addition in the capital balance of the partner.