Partnership

Dissolution

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common

In case of dissolution of a firm, if a partner has agreed to bear the realisation expenses and payment is made by the firm, the correct journal entry would be:

Date	Particulars	Dr. ₹	Cr. ₹
	Realisation A/c Dr.
	To Bank A/c

Date	Particulars	Dr. ₹	Cr. ₹
	Realisation A/c Dr.
	To Partner's Capital A/c

Date	Particulars	Dr. ₹	Cr. ₹
	Partner's Capital A/c Dr.
	To Bank A/c

No Entry

✅ Correct Option: 3

The expense belongs to the partner, so it must not touch Realisation A/c. The firm has merely paid on his behalf, which reduces what he can take out.

Entry: Partner's Capital A/c Dr. To Bank A/c.

Had the firm agreed to bear the expense, Realisation A/c would have been debited instead.

2026: 21 May Shift 1

As per the provisions of Section 48 of Indian Partnership Act, firm's assets are to be used in the prescribed order in case of dissolution of a firm. Arrange the following in order.

(A) In paying partner's loan

(B) The residue, if any, shall be divided among the partners in their profit sharing ratio

(D) In paying the debts of the firm to the third parties

Choose the correct answer from the options given below:

2025: 29 May Shift 2

Match List-I with List-II

List-I	List-II
(A). Compulsory Dissolution	(I). Partner becomes insane.
(B). Dissolution by notice	(II). Death of a partner.
(C). Dissolution by Court	(III). Business become illegal.
(D). Dissolution on certain contingencies	(IV). Partnership at will.

Choose the correct answer from the options given below:

2025: 31 May Shift 1

On dissolution of the firm, partner's capital accounts are closed through:

2025: 2 June Shift 2

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

2026: 13 May Shift 1

At the time of dissolution of a partnership firm goodwill does not appears in the balance sheet but a partner took over it at Rs. 60,000 for cash, how this transaction will be recorded in firm's books.

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?

In case of dissolution of a firm, if a partner has agreed to bear the realisation expenses and payment is made by the firm, the correct journal entry would be:

Solution

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