Partnership

Dissolution

Medium

common

At the time of dissolution of firm, the following information is provided

Rs.
Sundry debtors 21,500
Less: Provision for doubtful debts 500
21,000

Debtors realised at a discount of 5%,

Journal entry for realisation of debtors would be :

	Rs.
Sundry debtors	21,500
Less: Provision for doubtful debts	500
	21,000

Bank / Cash A/c Dr. 19,950

To Realisation A/c 19,950

Bank / Cash A/c Dr. 21,000

To Realisation A/c 21,000

Bank / Cash A/c Dr. 20,425

To Realisation A/c 20,425

Bank / Cash A/c Dr. 21,500

To Realisation A/c 21,500

✅ Correct Option: 3

Realisation is computed on the gross book value of debtors, because the provision for doubtful debts is transferred separately to the credit of Realisation A/c. Cash realised $= 21{,}500 \times 95\% = 20{,}425$ .

2025: 13 May Shift 1

When realization expenses are paid by the firm on behalf of a partner, such expenses are debited to:

2023: 11 June Shift 3

Mukund's Loan of Rs. 50,000 to the firm, was settled at Rs. 55,000 at the time of firm's dissolution, where Mukund was one of the partner. What entry will be passed ?

2025: 30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) On dissolution of a firm, creditors is transferred to:	(I) Bank account is credited
(B) Unrecorded liabilities when paid:	(II) Realization Account
(C) When realization expenses are paid by the firm on behalf of a partner, such expenses are	(III) Bank account is debited.
(D) When unrecorded assets are sold	(IV) Partner's Capital Account

Choose the correct answer from the options given below:

2025: 27 May Shift 2

Romesh took over Investments at Rs.8,100 which is 10% less then its book value. The book value of the investment was ____

2026: 12 May Shift 1

After transferring liabilities like creditors and bills payables to the Realisation Account, in the absence of any information regarding their payment, such liabilities are treated as:

2025: 29 May Shift 2

According to which section of the partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm?

At the time of dissolution of firm, the following information is provided Rs.Sundry debtors21,500Less: Provision for doubtful debts50021,000 Debtors realised at a discount of 5%, Journal entry for realisation of debtors would be :

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)

At the time of dissolution of firm, the following information is provided

Rs.
Sundry debtors 21,500
Less: Provision for doubtful debts 500
21,000

Debtors realised at a discount of 5%,

Journal entry for realisation of debtors would be :