Partnership

Dissolution

Medium

common

At the time of dissolution of a firm, the balance sheet shows creditors - ₹ 50,000; firm's capital - ₹ 1,40,000; cash balance is ₹ 10,000. Other assets realised ₹1,50,000. Gain/Loss in the realisation account will be:

₹ 30,000 (Gain)

₹ 30,000 (Loss)

₹ 20,000 (Gain)

₹ 20,000 (Loss)

✅ Correct Option: 2

Balance sheet total $= 50,000 + 1,40,000 = 1,90,000$ . Assets other than cash $= 1,90,000 - 10,000 = 1,80,000$ , which realised only $1,50,000$ . Loss on realisation $= 1,80,000 - 1,50,000 = 30,000$ .

2023: 11 June Shift 3

Realisation A/c is debited with __________ on the dissolution of firm.

2026: 23 May Shift 2

Select the items shown on the debit side of Realisation A/c :

A. Cash in hand

B. Intangible assets

C. Fictitious assets

D. Bills Receivables

Choose the correct answer from the options given below:

2025: 27 May Shift 1

In the case of a dissolution of a firm, accumulated losses are transferred to:

2026: 24 May Shift 1

In case of dissolution, match List-I with List-II.

List-I	List-II
(A) Partner's Loan is transferred to	(I) Credit side of Partners' Capital Account
(B) External Liabilities (appearing in balance sheet) are transferred to	(II) Debit side of Partners' Capital Account
(C) The accumulated profits and reserves are transferred to	(III) Bank Account
(D) The accumulated losses are transferred to	(IV) Realisation A/c

Choose the correct answer from the options given below:

2026: 19 May Shift 1

Choose the correct order in which the assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be applied in the dissolution of the firm.

(A) In paying to each partner the residue in profit sharing ratio.

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

(D) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner' loan);

Choose the correct answer from the options given below:

2022: 15 July Shift 2

Court may not order for dissolution of a partnership firm out of which of the following grounds:

At the time of dissolution of a firm, the balance sheet shows creditors - ₹ 50,000; firm's capital - ₹ 1,40,000; cash balance is ₹ 10,000. Other assets realised ₹1,50,000. Gain/Loss in the realisation account will be:

Solution

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