Partnership

Dissolution

Easy

common

Select the correct statements from the following:

(A) Realisation Account is prepared at the time of death of a partner.

(B) Revaluation Account is prepared at the time of dissolution of a firm.

(C) At the time of dissolution, the Book Value of Assets are transferred to the Debit Side of the Realisation Account.

(D) At the time of dissolution, the Realised value of Assets are transferred to the Credit Side of the Realisation Account.

Choose a pair of correct statements from the given options below:

(B) and (A) only

(B) and (D) only

✅ Correct Option: 3

Revaluation Account belongs to reconstitution events such as admission, retirement or death, while Realisation Account belongs to dissolution. So (A) and (B) are interchanged and both fail. On dissolution, assets are transferred at book value to the debit of Realisation Account and the amount actually realised is credited to it, so (C) and (D) are correct.

2024

What is the mode of dissolution of the firm followed by G, K and B?

2026: 6 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Partner pays the dissolution expenses and firm agrees to reimburse	(I) Debit Realisation Account and Credit Bank/Cash Account
(B) Partner bears the dissolution expenses on his own	(II) Excess shall be borne by the partner
(C) Firm bears the dissolution expenses	(III) No entry
(D) Firm has given the fixed sum to a partner for bearing dissolution expenses irrespective of actual amount	(IV) Debit Realisation Account and Credit Partner's Capital Account

Choose the correct answer from the options given below:

2026: 21 May Shift 1

On dissolution of a firm, Investment and Investment Fluctuation Fund appeared in the balance sheet. These will be transferred to:

2025: 15 May Shift 1

Arrange the following in the sequence in which they shall be applied in payment at the time of dissolution of a firm:

(A) The debts of the firm to the third parties.

(B) Partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan).

(D) Divided among the partners in their profit sharing ratio.

Choose the correct answer from the options given below:

2026: 29 May Shift 2

Match the 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., To Bank A/c
C.	Partner himself pays the realisation expenses	III.	Partner's Capital A/c Dr., To Bank A/c
D.	Partner has agreed to bear the realisation expenses but expenses are incurred and paid by the firm	IV.	Realisation A/c Dr., To Partner's Capital A/c

Choose the correct answer from the options given below:

2025: 29 May Shift 2

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

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)