CUET Accountancy 2025 PYQs3 June Shift 1. Free, no login required.

Partnership

Dissolution

Easy

common

On dissolution of a partnership firm, the bills payable is transferred to :

Cash Account

Realisation account

Bank account

Partners' capital account

✅ Correct Option: 2

During dissolution of a partnership firm, all assets and liabilities (except cash/bank and partners' capital accounts) are transferred to the Realisation Account.

Bills Payable is a liability of the firm. Following the standard dissolution procedure, it must be transferred to the Realisation Account.

The journal entry for transfer is:

Particulars	Debit (₹)	Credit (₹)
Bills Payable A/c	Dr.	xxx
To Realisation A/c		xxx
(Being bills payable transferred to realisation account)

The Realisation Account serves as a central account to:

Record all assets being realized (sold)
Record all liabilities being settled
Calculate the profit or loss on realization

When the bills payable are actually paid off, the entry will be:

Particulars	Debit (₹)	Credit (₹)
Realisation A/c	Dr.	xxx
To Cash/Bank A/c		xxx
(Being bills payable discharged)

Cash Account or Bank Account is used only for actual receipt or payment of cash, not for transferring liabilities. Partners' Capital Accounts receive their share of profit/loss from realisation, not the liabilities directly.

2025: 14 May Shift 1

Dissolution of a firm cannot take place in which of the situation:

2026: 24 May Shift 1

In case of dissolution, match List-I with List-II.

List-I	List-II
(A) Partner's Loan is transferred to	(I) Credit side of Partners' Capital Account
(B) External Liabilities (appearing in balance sheet) are transferred to	(II) Debit side of Partners' Capital Account
(C) The accumulated profits and reserves are transferred to	(III) Bank Account
(D) The accumulated losses are transferred to	(IV) Realisation A/c

Choose the correct answer from the options given below:

2026: 24 May Shift 1

"Adjudication of a partner as an insolvent" leads to ________.

2026: 19 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Dissolution expenses of Rs. 7,800 were paid by partner.	(I) Realisation A/c ......Dr\nTo Bank A/c
(B) When a creditor accepts a fixed asset in payment of his dues.	(II) No Entry
(C) There was an outstanding bill for repairs which had to be paid.	(III) Bank A/c ........Dr\nTo Realisation A/c
(D) There was an unrecorded investment sold.	(IV) Realisation A/c .... Dr\nTo Partner's Capital Account

Choose the correct answer from the options given below so that all items are matched:

2026: 24 May Shift 1

In case of dissolution, application of assets of the firm shall be applied in a particular manner and order.

Arrange the following steps in a sequence:

(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 the 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's Loan

Choose the correct answer from the options given below:

2022: 15 July Shift 2

All assets (except Cash/Bank and fictitious assets) are transferred to the _______ side of _______ account.

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