CUET Preparation Today
Identify the situation when no entry is required in case of dissolution of a partnership firm. |
When a partner accepts a fixed asset in payment of his dues When a partner makes payment of some firm's liability When a creditor accepts a fixed asset in payment of his/her dues When the partner's loan is paid by giving some asset |
When a creditor accepts a fixed asset in payment of his/her dues |
No entry is required in case of dissolution of a partnership firm when a creditor accepts a fixed asset in payment of his/her dues. This is because the transaction does not involve any change in the cash or bank balance of the firm. The firm is simply transferring ownership of a fixed asset to the creditor in order to settle its debt. |
