Do we need to pass entry for assets taken over by a creditor?

Yes.

Asset A/c Dr.

To Creditors A/c

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Yes.

Creditors A/c Dr.

To Asset A/c

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No. Don't need to pass any entry.

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None of these

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Solution

The correct option is C
No. Don't need to pass any entry.

No. We don't need to pass any entry for assets taken over by a creditor.

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Similar questions

Q. What Journal entry is passed when an asset is given to any of the firm's creditors towards partial payment of dues?

Q. Book Value of assets (other than cash and bank) transferred to Realisation Account is ₹ 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realised nothing and remaining assets are handed over to a Creditor, in full settlement of his claim.
You are required to record the Journal entries for realisation of assets.

For transfer of Assets, we pass an entry-

Q. The journal entry for transfer of fictitious assets, if any, is debited to _________ A/c and credited to __________ A/c.

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Do we need to pass entry for assets taken over by a creditor?

The correct option is C No. Don't need to pass any entry. No. We don't need to pass any entry for assets taken over by a creditor.

The correct option is C
No. Don't need to pass any entry.

No. We don't need to pass any entry for assets taken over by a creditor.