Partnership

Dissolution

Medium

Match List-I with List-II

List-I List-II
(A) Meaning of Dissolution (I) Section 49,of the partnership Act 1932
(B) Application of Assets (II) Section 39,of the partnership Act 1932
(C) Private Debts Vs Firm's Debts (III) Section 4,of the partnership Act 1932
(D) Nature of Partnership (IV) Section 48,of the partnership Act 1932

Choose the correct answer from the options given below:

List-I	List-II
(A) Meaning of Dissolution	(I) Section 49,of the partnership Act 1932
(B) Application of Assets	(II) Section 39,of the partnership Act 1932
(C) Private Debts Vs Firm's Debts	(III) Section 4,of the partnership Act 1932
(D) Nature of Partnership	(IV) Section 48,of the partnership Act 1932

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (II), (B) - (IV), (C) - (III), (D) - (I)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

✅ Correct Option: 4

The correct matching requires understanding the key provisions of the Indian Partnership Act, 1932:

(A) Meaning of Dissolution → (II) Section 39

Section 39 defines dissolution of a firm, which occurs when the relationship among all partners comes to an end. This is different from dissolution of partnership (between some partners).

(B) Application of Assets → (IV) Section 48

Section 48 specifies the order in which firm's assets must be applied during settlement of accounts:

First: Pay firm's debts to third parties
Second: Pay advances by partners (apart from capital)
Third: Pay partners' capital
Fourth: Distribute remaining profits among partners

(C) Private Debts Vs Firm's Debts → (I) Section 49

Section 49 deals with the priority between firm's creditors and a partner's separate creditors. It states that firm's property shall first be used to pay firm's debts, and a partner's private property shall first be used to pay their private debts.

(D) Nature of Partnership → (III) Section 4

Section 4 defines partnership as the relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all. This establishes the fundamental nature and definition of partnership.

Correct Answer: Option 4 → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)

2023: 28 May Shift 1

According to Indian Partnership Act, 1932, when the firm is dissolved, cash received on sale of assets are applied in following order :

(A) Paying to each partner proportionately what is due to him/her on account of capital

(B) In paying the secured debts of the firm to the third parties

(C) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital

(D) The residue, if any shall be divided among the partner's in their profit sharing ratio

(E) In paying unsecured debt of firm to third parties

Choose the correct answer from the options given below :

2025: 2 June Shift 2

On the happening of certain contingencies, Subject to contract between the partners, a firm is dissolved ,

(A) if constituted for a fixed term, by the expiry of that term.

(B) if constituted to carry out one or more ventures, by the completion thereof.

(D) by the adjudication of a partner as an insolvent

Choose the correct answer from the options given below:

2025: 2 June Shift 2

Match List-I with List-II

List-I	List-II
(Accounting standards Section of Act.)	(Issues)
(A) AS-3	(I) Settlement Of Accounts.
(B) AS-26	(II) Firm's debt and private debt
(C) Section 48 of the Indian partnership Act	(III) Cash flow statement.
(D) Section 49 of the Indian partnership Act	(IV) Treatment of goodwill.

Choose the correct answer from the options given below:

2026: 31 May Shift 1

Which of the following are credited to the Realisation Account?

A. Assets taken over by a partner

B. Liabilities paid by the firm

C. Sale of assets

D. Realisation of Unrecorded assets

Choose the correct answer from the options given below:

2026: 12 May Shift 1

Out of the following, which items are to be credited to Realisation A/c?

(A) Liabilities transferred

(B) Sales proceeds of assets

(D) Realisation expenses

Choose the correct answer from the options given below:

2025: 30 May Shift 1

On the dissolution of a firm, the Creditors are transferred to :

Solution

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