For which of the following, situations "No entry" will be passed at the time of Dissolution of firm when all the assets and Liabilities were already transferred.
A. Creditors of ₹50,000 were settled by giving stock of ₹60,000 in full settlement.
B. Loan to B of ₹60,000 was settled at ₹55,000 (B is a partner).
C. Realisation expense amounted to ₹5,000. Debtor of ₹8,000 paid these expenses in full settlement
D. Realisation expenses amounted to ₹10,000 were to be borne by C, a partner and were paid by him personally.
E. A's Loan to firm of ₹25,000 was settled by giving him furniture of same amount
Choose the correct answer from the options given below:

Correct option is B

In the dissolution of a firm, a "No entry" is needed when transactions do not impact the accounting records. In this case, (A) Creditors settled by stock, (C) Realisation expense paid by debtor, and (D) Realisation expenses borne and paid by a partner do not require an accounting entry as they don’t involve any movement in the firm’s books.