No entry is required when.............. accepts a fixed asset in payment of his dues for the full settlement at the time of dissolution of partnership firm.

Creditor

The correct answer is option 4- Creditor.

Settlement with the creditor through transfer of asset-

* 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 journal entry shall be made for the payment of Rs. 2,000 only.