HomeTestsSearchRankProfile
mediumMCQCUET Accountancy 2023 11 June Shift 32026Accountancy
1 mark

Select the entry that is to be made when a creditor accepts an asset in full and final settlement of his account.

  1. A
    Realisation A/c Dr To Bank A/c
  2. B
    Bank A/c Dr To Realisation A/c
  3. C
    Creditor A/c Dr To Asset A/c
  4. D
    No Entry

Solution & Step-by-step Explanation

At the time of dissolution, assets and liabilities have already been transferred to the Realisation Account. When a creditor takes over an asset in full settlement, a liability is canceled out directly against an asset. No cash changes hands, so no accounting entry is required.

Practice this question

Try it yourself before checking the explanation above.

Select the entry that is to be made when a creditor accepts an asset in full and final settlement of his account.
A
Realisation A/c Dr To Bank A/c
B
Bank A/c Dr To Realisation A/c
C
Creditor A/c Dr To Asset A/c
D
No Entry

Share This Question

PartnershipDissolutionAccounting Entries

Related Questions

easyMCQ

Which one of the following statements is true?

easyMCQ

Which of the following statements is not correct?

easyMCQ

Which one of the following statements is correct?

easyMCQ

The product formed by the reaction of an aldehyde with a primary amine is:

easyMCQ

Which part of the tobacco plant is infected by Meloidogyne incognita?

easyMCQ

The term ecosystem was coined by:

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Browse TestsLeaderboard

Discussion