Partnership

Dissolution

Easy

common

One of the partner took-over furniture at the time of dissolution of the firm, which account will be debited:

Realisation Account

Partner's Current Account

Partner's Loan Account

Partner's Capital Account

✅ Correct Option: 4

When a partner takes over any asset (furniture in this case) at the time of dissolution, the asset is being disposed of from the firm's books. This means the firm is transferring the asset to that partner.

Journal Entry:

Partner's Capital A/c Dr.

To Realisation A/c

Explanation:

When assets are initially transferred to Realisation Account at dissolution, Realisation Account is debited. But when a partner takes over an asset, it means that asset is now disposed of to that partner. The Realisation Account gets credited (as the asset goes out), and the partner's Capital Account is debited because the value of the asset taken is adjusted against their capital balance.

This is similar to the partner "purchasing" the asset from the firm, and the payment is made by reducing their capital balance in the firm.

Therefore, Partner's Capital Account will be debited.

2023: 20 June Shift 2

The dissolution of Partnership may take place due to:

A. Retirement of Partner

B. Death of Partner

C. Insolvency of Partner

D. Admission of New Partner

E. Completion of Venture, if partnership formed for that purpose

Choose the correct answer from the options given below:

2025: 4 June Shift 2

As per Section 48 of the Partnership Act 1932, which of the following will be utilized for payment of losses, including deficiencies of capital:

(A) Out of Profits

(B) Out of capital of Partners

(D) Creditors Assets

Choose the correct answer from the options given below:

2026: 13 May Shift 2

If a partnership firm is being dissolved, a liability taken over by a partner is credited to :

2025: 22 May Shift 2

Which of the following are the ways for the dissolution of a firm?

(A) Dissolution by Notice

(B) Dissolution by agreement

(D) Dissolution by not terminating business

Choose the correct answer from the options given below:

2025: 2 June Shift 2

When realisation expenses are paid by the Partner on behalf of a Firm, which account will be credited:

2023: 11 June Shift 3

Select the way by which provisions appearing in the Balance Sheet of a partnership firm are closed at the time of firm's dissolution.

One of the partner took-over furniture at the time of dissolution of the firm, which account will be debited:

Solution

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