Identify the situation when no entry is required in case of dissoluti…

The correct answer is Option (3) → When a creditor accepts a fixed asset in payment of his/her dues

Both the creditor and the asset are already in the Realisation Account, and no cash moves, so no entry is needed when a creditor accepts an asset in full settlement. In the other cases a partner’s account or cash is involved and an entry is passed.

Why the other options are incorrect

• Option (1) When a partner accepts a fixed asset in payment of his dues — Incorrect. Partner’s Capital A/c Dr. To Realisation A/c is recorded.

• Option (2) When a partner makes payment of some firm’s liability — Incorrect. Realisation A/c Dr. To Partner’s Capital A/c is recorded.

• Option (4) When the partner’s loan is paid by giving some asset — Incorrect. A partner’s loan is not in the Realisation Account, so Partner’s Loan A/c Dr. To Realisation A/c is recorded.