Partnership

Dissolution

Medium

common

Anil and Shobha are partners in a firm, and on 31st March 2020, they decided to dissolve the firm. Shobha was appointed to look after the dissolution work for which she was allowed a remuneration of Rs.15,000. She agreed to bear dissolution expenses. Actual dissolution expenses paid by her amounted to Rs. 11,800. Choose the correct journal entry.

Realisation A/c Dr. 15,000

To Shobha's Capital A/c 15,000

Realisation A/c Dr. 11,800

To Shobha's Capital A/c 11,800

Realisation A/c Dr. 15,000

To Bank A/c 15,000

Shobha's Capital A/c Dr. 15,000

To Bank A/c 15,000

✅ Correct Option: 1

When a partner is allowed a fixed remuneration and agrees to bear the expenses personally, only the agreed remuneration is recorded. The actual expenditure of $11,800$ is her own affair and is ignored.

Entry: Realisation A/c Dr. $15,000$ , To Shobha's Capital A/c $15,000$ .

2022: 15 July Shift 2

Identify the correct sequence or order of application of assets including any sum contributed by the partners, in case of dissolution of partnership firm to makeup deficiencies of capital.

A. In paying each partner proportionately what is due to him form the firm for advances distinguished from capital

B. In paying to each partner proportionately what is due to him on account of capital

C. In paying the debts of the firm to the third parties

D. The residue, if any, shall be divided among the partners in their profit sharing ratio

Choose the correct answer from the options given below:

2023: 20 June Shift 2

Arrange the following in the context of dissolution of partnership firm.

A. Payment of loan from Partners

B. Payment of secured outsider's liabilities

C. Realisation of assets into cash

D. Settlement of partner's capital

E. Payment of unsecured outsider's liability

Choose the correct answer from the options given below:

2025: 14 May Shift 1

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

2026: 13 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Realisation expenses are incurred and paid by the firm	(I) No Entry
(B) Realisation expenses are paid by a partner on behalf of the firm	(II) Realisation A/c Dr.\nTo Bank A/c
(C) Partner himself pays the realisation expenses	(III) Partner's Capital A/c Dr.\nTo Bank A/c
(D) Partner has agreed to bear the realisation expenses but expenses are paid by the firm	(IV) Realisation A/c Dr.\nTo Partner's Capital A/c

Choose the correct answer from the given options below:

2025: 29 May Shift 2

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

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) At the time of dissolution, unrecorded assets when taken over by a partner are shown in	(I) Debit of Realisation Account
(B) At the time of dissolution, unrecorded liabilities when paid are shown in	(II) Credit of Partners' capital Account
(C) At the time of admission of a partner, General Reserve will be shown in	(III) Debit of Partners' capital Account
(D) At the time of admission of a partner, Debit balance of Profit & Loss A/c will be shown in	(IV) Credit of Realisation Account

Choose the correct answer from the options given below:

Solution

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