A creditor to whom ₹25000 was due accepts stock of the book value of ₹20000 at ₹18000 and the balance in cash at the time of dissolution of partnership firm. For how much amount of journal entry is passed in the books of account?

₹7000

For settlement with the creditor through transfer of assets when a creditor accepts an asset in full and final settlement of his account, no journal entry needs to be recorded. But, if the creditor accepts an asset only as part payment of his/her dues, the entry will be made for cash payment only. For example, a creditor to whom Rs. 10,000 was due accepts office equipment worth Rs. 8,000 and is paid Rs. 2,000 in cash, the following entry shall be made for the payment of Rs. 2,000 only.-
Realisation A/c Dr.
   To Bank A/c
So here, creditor is of ₹25000 and he accepts asset for ₹18000 means ₹7000 will be paid by cash.