Question

8 - What entry is journalise in the books when an asset is given to a creditor in full settlement of his
dues
​

Answer 1

Realisation A/C.............. Dr.
To Bank A/C
(Being the asset given to creditor towards partial payment of dues)

Note: For partial payment of dues, the amount that will be shown in the realisation account will the amount remaining after taking over the asset, i.e, (amount due - value of asset).