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CUET Accountancy 2025 PYQs27 May Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 27 May Shift 2

Dissolution

past year questions, Partnership, CUET Accountancy 2025 27 May Shift 2

Easy

common

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:

Solution

✅ Correct Option: 3

According to the Indian Partnership Act, 1932, a partnership firm can be dissolved in the following ways:

(A) Dissolution by agreement - Partners can mutually agree to dissolve the firm at any time. This is based on the principle of mutual consent.

(B) Compulsory dissolution - The firm must be dissolved in certain circumstances:

  • When all partners or all but one partner become insolvent
  • When the business of the firm becomes unlawful
  • When any event makes it unlawful to carry on the partnership business

(C) On the happening of certain contingencies - The firm is dissolved when:

  • The fixed term of partnership expires (if formed for a specific period)
  • The specific venture is completed (if formed for a particular venture)
  • Death of a partner occurs (unless the partnership deed provides otherwise)
  • Insolvency of a partner (unless the partnership deed provides otherwise)

(D) Dissolution by notice - In a partnership at will (partnership with no fixed term), any partner can dissolve the firm by giving written notice to all other partners of his intention to dissolve.

All four modes are valid methods of dissolution under the Partnership Act.

Correct Answer: Option 3: (A), (B), (C) and (D)

Related questions:

2023: 29 May Shift 2

Which mode of dissolution is highlighted in the above case?

2023: 28 May Shift 1

On dissolution of partnership, goodwill account is transferred to :

2026: 13 May Shift 1

Match List-I with List-II

List-IList-II
(A) Creditors are Paid by Firm at the time of dissolution of Partnership Firm in cash.(I) Realization Account Debited and Partner's Capital Account Credited.
(B) Asset are taken over by a partner at the time of dissolution of Partnership Firm.(II) No Entry
(C) Bills Payable are paid by giving Furnitures in full settlement.(III) Realization Account Debited and Cash Account Credited.
(D) Unrecorded Liability taken over by a partner at the time of dissolution of a Partnership Firm.(IV) Partner's Capital Account Debited and Realization Account Credited.

Choose the correct answer from the options given below:

2025: 13 May Shift 2

In case of dissolution Machine costing Rs 20,000, alongwith cash of Rs 5,000 were given to creditors of Rs 30,000 in full settlement of their claim.

In this case Realisation A/c will be Debited with ___________.

2026: 29 May Shift 2

Match the LIST-I with LIST-II

LIST-ILIST-II
A.Realisation expenses are incurred and paid by the firmI.No Entry
B.Realisation expenses are paid by a partner on behalf of the firmII.Realisation A/c Dr., To Bank A/c
C.Partner himself pays the realisation expensesIII.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 firmIV.Realisation A/c Dr., To Partner's Capital A/c

Choose the correct answer from the options given below:

2026: 24 May Shift 1

Deferred revenue expenditure appearing in the old Balance Sheet at the time of Dissolution of partnership will be:

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