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CUET Accountancy 2025 PYQs15 May Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 15 May Shift 2

Dissolution

past year questions, Partnership, CUET Accountancy 2025 15 May Shift 2

Medium

Which of the following will lead to dissolution of partnership firm?

Solution

✅ Correct Option: 2

The key distinction here is between dissolution of partnership and dissolution of partnership firm.

Dissolution of Partnership refers to reconstitution where the relationship between existing partners changes, but the firm may continue with remaining/new partners. This includes:

  • Admission of a partner (Option 1)
  • Death of a partner (Option 3)
  • Retirement of a partner (Option 4)

In all these cases, the partnership deed is altered and a new partnership is formed, but the business can continue.

Dissolution of Partnership Firm means complete termination and winding up of the business itself. The firm ceases to exist entirely.

According to Section 40 of the Indian Partnership Act, 1932, a firm may be dissolved with the consent of all the partners. When all partners mutually agree to dissolve the firm, the business is completely closed down and all assets are liquidated.

This is fundamentally different from reconstitution events where the business continues despite changes in partnership composition.

Therefore, Option 2 is correct as it leads to complete dissolution of the firm, while the other options merely reconstitute the partnership.

Related questions:

2024

Existing Profit and Loss Account in the books of the firm will be shared/borne by partners in the ratio:

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:

2026: 29 May Shift 1

Creditors are transferred to __________ on the dissolution of the firm.

2025: 15 May Shift 2

In case of dissolution of a partnership firm, losses, including deficiencies of capital, shall be paid first out of ...............

2026: 11 May Shift 1

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

2026: 11 May Shift 1

Match List-I Dissolution transactions with List-II Journal Entries

LIST-ILIST-II
A.For sale of assetsI.No Journal Entry
B.Transfer of assets to realisation accountII.Bank A/c Dr. To Realisation A/c
C.Creditors took machinery for full settlement of his claimsIII.Realisation A/c Dr. To Assets A/c
D.Dissolution expenses paidIV.Realisation A/c Dr. To Bank A/c

Choose the correct answer from the options given below:

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