Partnership

Dissolution

Medium

common

Varun (partner) had given a loan to firm of Rs. 5,00,000. On dissolution, he accepted furniture of Rs. 4,50,000 against the loan. The balance Rs. 50,000 will be:

Transferred to Realisation A/c

Transferred to Credit of Partner's Capital A/c

Transferred to Debit of Partner's Capital A/c

Paid to him

✅ Correct Option: 4

A partner's loan is not transferred to Realisation A/c; it is settled through a separate Partner's Loan A/c after outside liabilities are paid. Furniture of $4,50,000$ is debited to that account and the unsettled balance of $50,000$ is discharged in cash.

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:

2025: 30 May Shift 2

In case of the dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. Arrange in the correct manner and order the assets of the firm, including any sum contributed by the partners to make up for deficiencies of capital:

(A) In paying to each partner proportionately what is due to him on account of capital

(B) In paying the 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 (i.e. partner's loan)

(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:

2025: 16 May Shift 1

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:

2025: 14 May Shift 2

Which combination of statements is true about dissolution-

(A) Dissolution of a partnership is different from dissolution of a firm.

(B) A partnership is dissolved when there is a death of a partner.

(D) A firm is compulsorily dissolved when a partner decides to retire.

Choose the correct answer from the options given below:

2022: 30 Aug Shift 2

Aman and Mohan, partners of a firm decided to dissolve the business on 31-03-22. The firm decided to pay realisation expenses of Rs. 1,000 on behalf of Mohan. Rs.1000 will be debited to

2025: 27 May Shift 1

Unrecorded assets when taken over by a partner are shown on:

Varun (partner) had given a loan to firm of Rs. 5,00,000. On dissolution, he accepted furniture of Rs. 4,50,000 against the loan. The balance Rs. 50,000 will be:

Solution

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