Partnership

Dissolution

Medium

common

Match List-I with List-II

List–I (Events) List–II (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 (Events)	List–II (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 differences between Dissolution of Partnership and Dissolution of Firm:

Dissolution of Partnership: Reconstitution where partnership agreement ends but firm continues with remaining/new partners. Business continues, books continue.

Dissolution of Firm: Complete closure where firm ceases to exist. Business terminates, books are closed.

Matching the items:

(A) Termination of business → When business terminates completely, it results in Dissolution of firm (III)

(B) Continuation of Business → Business can continue only in Dissolution of partnership (IV), as the firm remains intact with changed partnership.

(C) Intervention of court → Court intervention is typically Not possible in dissolution of partnership (I) as it's mutual and doesn't require court orders. Court intervention is required only for dissolution of firm in disputed cases.

(D) Continuation of books of accounts → Books continue when firm continues, which happens in Dissolution of partnership (IV). Books are closed in dissolution of firm, making continuation Not possible in dissolution of firm (II).

Option 4 provides the most logical matching: (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

The question accepts both Option 1 and Option 4 as correct answers, suggesting alternative valid interpretations of the relationship between events and their results in the context of partnership reconstitution.

Correct Options: 1, 4

2026: 6 June Shift 1

On dissolution of a firm, Partner's Loan Account is transferred to:

2026: 20 May Shift 1

Match List-I with List-II

List-I (Cases for payment of realisation expenses)	List-II (Journal entry)
(A) When realisation expenses are incurred and paid by the firm	(I) Realisation A/c Dr. To Partner's Capital A/c
(B) When realisation expenses are paid by a partner on behalf of the firm	(II) No entry is required
(C) When a partner has agreed to bear the realisation expenses and the realisation expenses are paid by the firm	(III) Realisation A/c Dr. To Bank A/c
(D) When a partner has agreed to bear the realisation expenses and the partner himself pays the realisation expenses.	(IV) Partner's Capital A/C Dr. To Bank A/c

Choose the correct answer from the options given below:

2023: 29 May Shift 2

When a creditor accepts an asset whose value is more than the amount due to him, he will _______ the excess amount which will be credited to _______ Account.

2026: 11 May Shift 1

At the suit of a partner, the court may order a partnership firm to be dissolved on the following grounds :

A. When a partner becomes insane.

B. When a partner becomes permanently incapable of performing his duties as a partner.

C. When a partner is guilty of misconduct which is likely to adversely affect the business of the firm.

D. When a partner persistently commits breach of partnership agreement.

Choose the correct answer from the options given below:

2023: 28 May Shift 1

On Dissolution of partnership firm out of total debtors of Rs. 2,50,000, Rs. 10,000 became bad and the rest realised 70%. In the given case Bank A/c will be debited by :

2025: 22 May Shift 2

If the asset is taken over by the creditor in lieu of the amount due to him, then the journal entry will be:

Solution

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