Partnership

Dissolution

Easy

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.

✅ Correct Option: 4

According to Section 39 of the Partnership Act, 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

This section distinguishes between:

Dissolution of partnership → Changes in the relationship between some partners (like retirement or admission of a partner)
Dissolution of firm → Complete termination of the partnership relationship between all partners, bringing the business to an end

Section 39 specifically addresses the dissolution of the firm, which is the more comprehensive dissolution involving all partners and resulting in the closure of the firm's business operations.

The correct option is 39.

2026: 11 May Shift 2

According to Section 48 of Indian Partnership Act, amount realized from assets, along with contributions from partners, if required, to make up deficiencies of capital shall be utilized in a particular order:

A. To pay off unsecured loan.

B. In settlement of capital account balances.

C. To pay off secured loan.

D. The surplus, if any, is divided among partners in their profit-sharing ratio.

Choose correct answer from options given below:

2025: 3 June Shift 2

At the time of dissolution, if an asset is taken over by a partner, what journal will be recorded in the books of the firm :-

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:

2026: 11 May Shift 1

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

2025: 27 May Shift 2

Anubha looked after the dissolution work for remuneration of Rs. 8,500 and agreed to bear dissolution expenses upto Rs. 6,000. Actual expenses paid by her were Rs. 7,600. In this case,

(A) Realisation A/c is debited by Rs. 10,100

(B) Anubha's Capital A/c is credited by Rs. 9,600.

(D) Anubha's Capital is credited by Rs. 10100.

Choose the correct answer from the options given below:

2026: 6 June Shift 1

Arrange the following in the correct sequence for the purpose of preparing Realisation account.

(A) Settlement of Unrecorded Assets and Liabilities

(B) Transfer of Assets and Liabilities to Realisation A/c

(D) Sale of Assets and Payment of Liabilities

Choose the correct answer from the options given below:

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.

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