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CUET Accountancy 2025 PYQs27 May Shift 1. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 27 May Shift 1

Dissolution

past year questions, Partnership, CUET Accountancy 2025 27 May Shift 1

Medium

common

Match List-I with List-II

List-IList-II
(A) Compulsory Dissolution(I) A partner persistently commits breach of partnership agreement.
(B) Happening of contingencies(II) Death of a partner
(C) Dissolution by Court(III) According to contract between the partners.
(D) Dissolution by agreement(IV) Business becomes illegal

Choose the correct answer from the options given below:

  1. (A) - (IV), (B) - (I), (C) - (III), (D) - (II)
  2. (A) - (II), (B) - (I), (C) - (IV), (D) - (III)
  3. (A) - (IV), (B) - (II), (C) - (I), (D) - (III)
  4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Solution

✅ Correct Option: 3

Under the Partnership Act, 1932, dissolution of partnership firm occurs in different ways:

(A) Compulsory Dissolution occurs when continuation of business becomes unlawful. When business becomes illegal (IV) due to change in law or any other reason, the partnership must be dissolved compulsorily. This is mandatory under Section 41 of the Act.

(B) Happening of contingencies refers to dissolution due to occurrence of certain specified events under Section 42. Death of a partner (II) is one such contingency that leads to automatic dissolution (unless partnership deed provides otherwise). Other contingencies include insolvency of a partner or expiry of fixed term.

(C) Dissolution by Court occurs when a partner files suit in court under Section 44. The court may order dissolution on various grounds including when a partner persistently commits breach of partnership agreement (I). Other grounds include partner's insanity, permanent incapacity, misconduct, or when business can only be carried on at a loss.

(D) Dissolution by agreement happens when all partners mutually agree to dissolve the firm according to contract between the partners (III). This is covered under Section 40 and may occur either as per original partnership deed or through mutual consent of all partners.

The correct matching is: (A) - (IV), (B) - (II), (C) - (I), (D) - (III)

Option 3 is correct.

Related questions:

2026: 31 May Shift 1

Arrange the steps in order while preparing Realisation A/c in case of dissolution of a partnership firm.

A. Transfer of Assets & Liabilities

B. Sale of Assets

C. Payment of Liabilities

D. Transfer of Profit & Loss to Partners' Capital A/c

Choose the correct answer from the options given below:

2022: 20 Aug Shift 2

Raman and Naman were in partnership sharing profit and losses as 3 : 2. Their partnership firm was dissolved on 31 March 2022. On the date of dissolution, Naman's loan was Rs. 20,000. Naman agreed to take stock (already transferred to Realisation A/c) of Rs. 15,000 at Rs. 18,000 and balance in cash for the settlement of loan. Journal Entry for above transaction is:

2025: 4 June Shift 2

In case of dissolution of firm, the bank overdraft is transferred to:

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

(C) divided among the partners in their profit sharing ratio.

(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: 31 May Shift 1

On dissolution of a firm, partner's loan account is transferred to:

2025: 27 May Shift 2

In which of the following ways does dissolution of a firm take place?

(A) Dissolution by agreement

(B) Compulsory dissolution

(C) On the happening of certain contingencies

(D) Dissolution by notice

Choose the correct answer from the options given below:

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