Partnership

Dissolution

Medium

common

Match List-I with List-II

List-I List-II
(Events) (Result.)
(A) Termination of business. (I) Not Possible In Dissolution Of Partnership.
(B) Continuation Of Business (II) Not possible in the dissolution of a firm.
(C) Intervention of court. (III) Dissolution of firm
(D) Continuation of books of accounts. (IV) Dissolution of partnership.

Choose the correct answer from the options given below:

List-I	List-II
(Events)	(Result.)
(A) Termination of business.	(I) Not Possible In Dissolution Of Partnership.
(B) Continuation Of Business	(II) Not possible in the dissolution of a firm.
(C) Intervention of court.	(III) Dissolution of firm
(D) Continuation of books of accounts.	(IV) Dissolution of partnership.

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 1,4

Understanding the key difference is crucial here:

Dissolution of Partnership = Relationship between partners changes, but business continues
Dissolution of Firm = Business terminates completely

Let's analyze each match:

(A) Termination of business:

Can match with either:

(I) Not Possible In Dissolution Of Partnership → Correct, as business continues in partnership dissolution
(III) Dissolution of firm → Correct, as business terminates when firm dissolves

(B) Continuation of Business:

Can match with either:

(II) Not possible in dissolution of a firm → Correct, as business ends completely
(IV) Dissolution of partnership → Correct, as business continues when only partnership dissolves

(C) Intervention of court:

Can match with either:

(III) Dissolution of firm → Correct, court can order firm dissolution
(I) Not Possible In Dissolution Of Partnership → Correct, dissolution of partnership happens by mutual agreement, not court intervention

(D) Continuation of books of accounts:

Can match with either:

(IV) Dissolution of partnership → Correct, same books continue as business continues
(II) Not possible in dissolution of a firm → Correct, all books are closed when firm dissolves

Option 1: (A)-(I), (B)-(II), (C)-(III), (D)-(IV) ✓

Option 4: (A)-(III), (B)-(IV), (C)-(I), (D)-(II) ✓

Both options were awarded marks!

2025: 14 May Shift 1

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

2025: 26 May Shift 2

Which of the following statements are true:

(A) Dissolution of a partnership is different from dissolution of a firm.

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

(D) A firm is compulsorily dissolved when a partner decide to retire.

Choose the correct answer from the options given below:

2025: 4 June Shift 2

In case of dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. The assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be applied in the following manner and order:

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

(B). The residue, if any, shall be divided among the partners in their profit sharing ratio.

(C). In paying the debts of the firm to third parties.

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

2025: 22 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 ………….

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)