Partnership

Dissolution

Easy

On 1/4/22, X and Y decided to dissolve their firm. On that date of dissolution, Goodwill appeared at Rs. 5,00,000 in the Balance Sheet. Goodwill will be:

Transferred to the debit side of realisation A/C

Transferred to the credit side of partner's Capital A/c in their profit sharing ratio

Transferred to the credit side of realisation A/c

Transferred to cash account

✅ Correct Option: 1

On dissolution, all assets (including Goodwill appearing in Balance Sheet) are transferred to the debit side of Realisation Account at book value. Any amount realised from sale of goodwill is credited to Realisation A/c.

2022: 23 Aug Shift 2

On dissolution of a firm, bank overdraft is transferred to :

2025: 30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) On dissolution of a firm, creditors is transferred to:	(I) Bank account is credited
(B) Unrecorded liabilities when paid:	(II) Realization Account
(C) When realization expenses are paid by the firm on behalf of a partner, such expenses are	(III) Bank account is debited.
(D) When unrecorded assets are sold	(IV) Partner's Capital Account

Choose the correct answer from the options given below:

2025: 16 May Shift 1

While settlement of Accounts, what should be the order of application of assets of Firm

(A) In paying the debts of the firm to the third parties

(B) In paying to each partner proportionately what is due to him on account of capital

(D) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan)

Choose the correct answer from the options given below:

2025: 3 June Shift 2

The dissolution of partnership may take place in any of the following ways except:

2024

Determine the amount of Profit and Loss Account.

2026: 21 May Shift 2

Following are the sequence of steps in case of a dissolution of a partnership firm. Arrange the following steps in order:

A. Assets taken over by a partner, and payment of liabilities.

B. Transfer of profit and loss on realisation

C. All assets and all external liabilities are transferred to realisation account.

D. Settlement of partners' accounts

Choose the correct answer from the options given below:

On 1/4/22, X and Y decided to dissolve their firm. On that date of dissolution, Goodwill appeared at Rs. 5,00,000 in the Balance Sheet. Goodwill will be:

Solution

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