CUET Accountancy: PartnershipDissolution. Free, no login required.

Arrange the following in the correct sequence for the purpose of preparing Realisation account.

(A) Settlement of Unrecorded Assets and Liabilities

(B) Transfer of Assets and Liabilities to Realisation A/c

(C) Transfer of Profit and loss on Realisation

(D) Sale of Assets and Payment of Liabilities

Choose the correct answer from the options given below:

Identify the entries which are correct:

(A) For remuneration of partner - Debit Realisation A/c and Credit Partner's Capital A/c

(B) For sale of assets - Debit Realisation A/c and Credit Bank A/c

(C) For settlement of unrecorded liability - Debit Realisation A/c and Credit Bank A/c

(D) For transfer of general reserve - Debit General Reserve A/c and Credit Partners' Capital A/c

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On dissolution of a firm, Partner's Loan Account is transferred to:

In case of dissolution of firm, if a partner agrees to take over the debtors of Rs. 80,000 at 10% discount, the entry for the same shall be:

Match List-I with List-II

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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

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On dissolution of a firm, creditors are transferred to:

Arrange the steps in order while preparing Realisation A/c in case of dissolution of a partnership firm.

A. Transfer of Assets & Liabilities

B. Sale of Assets

C. Payment of Liabilities

D. Transfer of Profit & Loss to Partners' Capital A/c

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Match the LIST-I with LIST-II

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

State the order of payment to be followed on the dissolution of a firm:

A. To each partner proportionately what is due to him/her from the firm for advances provided i.e. Partner's Loan A/c

B. To each partner proportionately what is due to him/her on account of capital

C. For the debts of the firm to outside parties

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At the time of dissolution, creditors appear at Rs 50,000. Half of the creditors agreed to take unrecorded furniture of Rs 18,000 and Rs 5,000 in full settlement and the remaining creditors were paid 90%. The amount paid to the creditors that will be shown in the Realisation A/c is:

Match the LIST-I with LIST-II

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On dissolution of the firm, Partners Capital Account are closed through:

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:

At the suit of a partner, the court may order a partnership firm to be dissolved on any of the following grounds:

(A) When a partner becomes insane.

(B) When a partner becomes permanently incapable of performing his duties as a partner.

(C) In accordance with a contract between the partners.

(D) When a partner is guilty of misconduct which is likely to adversely affect the business of the firm.

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

Creditors are transferred to __________ on the dissolution of the firm.

Arrange the following in the correct sequence, in which the assets of the firm shall be applied, including any sum contributed by the partners to make up deficiencies in the case of dissolution of a partnership firm.

(A) 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).

(B) In paying the debts of the firm to the third parties.

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

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

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Match List-I with List-II

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In case of dissolution of a firm:

(A) The firm ceases to conduct business and has to settle its accounts.

(B) It disposes off all its assets for satisfying all the claims against it.

(C) Rules as provided in Section 104 of the Indian partnership will be applicable.

(D) Rules as provided in Section 48 of the Indian partnership will be applicable.

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"Adjudication of a partner as an insolvent" leads to ________.

In case of dissolution, application of assets of the firm shall be applied in a particular manner and order.

Arrange the following steps in a sequence:

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

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

(C) In paying the debts of the firm to the third parties.

(D) 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

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Sharan, Raman and Manan are partners sharing profit and losses in the ratio of 1:1:1. Due to heavy losses, they decide to close their business. At the time of dissolution, Sharan agreed to bear all realisation expenses. Realisation expenses were to be paid by the firm. For the service Sharan is paid Rs.6,000. Actual expenses on realisation paid by the firm amounted to Rs. 9,000. Realisation A/c will be:

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

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Deferred revenue expenditure appearing in the old Balance Sheet at the time of Dissolution of partnership will be:

In case of dissolution of a firm, the partners loan A/c is transfer to ________

Which of the following does NOT happen on the dissolution of a partnership?

Select the correct sequence of payment of the following from the amount realised by the sale of assets on the dissolution of a partnership firm.

A. Partners' capital

B. Residue (if any)

C. Partner's loan

D. Outside liabilities of the firm

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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

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