Partnership

Dissolution

Easy

Realisation A/c is debited with __________ on the dissolution of firm.

Transfer of all assets that are to be Realised

Transfer of all external Liabilities of the firm

Cash received on sale of assets

Any asset that was taken over by any one of partner

✅ Correct Option: 1

Realisation Account is debited with the transfer of all assets (except cash, bank, and fictitious assets) that are to be realised. External liabilities are credited, cash received is credited, and assets taken over by partners are credited (debited to partner's capital).

2025: 27 May Shift 1

Choose combination of statements that are true about dissolution-

(A) Dissolution of partnership can not take place without intervention of the court.

(B) Court can order a firm to be dissolved when a partner becomes insane.

(D) A partnership is dissolved when there is a death of a partner.

Choose the correct answer from the options given below:

(B) and (D) only
(A), (B) and (D) only
(A) and (D) only
(B), (C) and (D) only

2025: 22 May Shift 2

According to Section ………. of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

2026: 29 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Realisation expenses are incurred and paid by the firm	I.	No Entry
B.	Realisation expenses are paid by a partner on behalf of the firm	II.	Realisation A/c Dr., To Bank A/c
C.	Partner himself pays the realisation expenses	III.	Partner's Capital A/c Dr., To Bank A/c
D.	Partner has agreed to bear the realisation expenses but expenses are incurred and paid by the firm	IV.	Realisation A/c Dr., To Partner's Capital A/c

Choose the correct answer from the options given below:

2025: 2 June Shift 2

When realisation expenses are paid by the Partner on behalf of a Firm, which account will be credited:

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) At the time of dissolution, unrecorded assets when taken over by a partner are shown in	(I) Debit of Realisation Account
(B) At the time of dissolution, unrecorded liabilities when paid are shown in	(II) Credit of Partners' capital Account
(C) At the time of admission of a partner, General Reserve will be shown in	(III) Debit of Partners' capital Account
(D) At the time of admission of a partner, Debit balance of Profit & Loss A/c will be shown in	(IV) Credit of Realisation Account

Choose the correct answer from the options given below:

2025: 15 May Shift 1

According to which section of the partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm?

Realisation A/c is debited with __________ on the dissolution of firm.

Solution

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