At the time of dissolution of a firm, if a creditor allows a discount on the amount due, what will be the effect on the Realisation Account?

Correct answer: Realisation Account में लाभ (Gain) credited किया जाएगा

When a creditor accepts less than the amount recorded as payable, the difference between the book value of the liability and the amount actually paid is a gain. This gain is credited to the Realisation Account. Therefore, option A is correct; option B is incorrect because the discount creates a gain, not a loss. Exam tip: Discount allowed by a creditor is treated as a gain on realisation.