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CUET Accountancy 2025 PYQs4 June Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 4 June Shift 2

Dissolution

past year questions, Partnership, CUET Accountancy 2025 4 June Shift 2

Easy

common

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

Solution

✅ Correct Option: 3

Bank overdraft is a liability of the firm representing the amount owed to the bank. During dissolution, all external liabilities (liabilities other than partners' capital and loans) must be transferred to the Realisation Account.

The journal entry for transferring bank overdraft is:

ParticularsDebit (₹)Credit (₹)
Bank Overdraft A/cxxx
To Realisation A/cxxx
(Being bank overdraft transferred to realisation account)

Subsequently, when the bank overdraft is actually paid:

ParticularsDebit (₹)Credit (₹)
Realisation A/cxxx
To Bank A/cxxx
(Being bank overdraft paid off)

The Realisation Account serves as a central account where all assets (except cash/bank) are transferred on the debit side and all external liabilities are transferred on the credit side. This helps in determining the profit or loss on realisation, which is then distributed among partners in their profit-sharing ratio.

Bank overdraft cannot be transferred to Bank Account (as they are different accounts), Partners' Capital Account, or Partners' Current Account as these don't record settlement of external liabilities during dissolution.

Related questions:

2025: 29 May Shift 2

At the time of dissolution, a firm transferred Rs.100,000 Assets to the realization account and 50% of the assets were taken over by Kiran at 20% discount. How much net assets were taken over by Kiran?

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 ………….

2026: 24 May Shift 1

Sharan, Raman and Manan are partners sharing profit and losses in the ratio of 1:1:1. Due to heavy losses, they decide to close their business. At the time of dissolution, Sharan agreed to bear all realisation expenses. Realisation expenses were to be paid by the firm. For the service Sharan is paid Rs.6,000. Actual expenses on realisation paid by the firm amounted to Rs. 9,000. Realisation A/c will be:

2026: 19 May Shift 1

Match List-I with List-II

List-IList-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:

2025: 30 May Shift 2

A partnership firm is dissolved compulsorily in the following cases:

(A) when all the partners or all but except one partner, become insolvent, rendering them incompetent to sign a contract:

(B) When the business of the firm becomes illegal

(C) Change in existing profit sharing ratio among partners

(D) When some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership, e.g., when a partner who is a citizen of a country becomes an alien enemy because of the declaration of war with his country and India.

Choose the correct answer from the options given below:

2024

What is the mode of dissolution of the firm followed by G, K and B?

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