CUET Accountancy: PartnershipDissolution. Free, no login required.

Match the LIST-I with LIST-II

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In case of dissolution of a partnership firm, Match the LIST-I with LIST-II.

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Following are the sequence of steps in case of a dissolution of a partnership firm. Arrange the following steps in order:

A. Assets taken over by a partner, and payment of liabilities.

B. Transfer of profit and loss on realisation

C. All assets and all external liabilities are transferred to realisation account.

D. Settlement of partners' accounts

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When a firm is dissolved with the consent of all the partners or in accordance with a contract between the partners, it is known as:

Dissolution of Firm means:

A. Assets are revalued and liabilities are reassessed. New balance sheet is drawn

B. Economic relationships between partners come to an end

C. The business of the firm is closed/terminated

D. The business is not closed/terminated

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At the time of the Dissolution of the Partnership firm, "Creditors were Rs.1,00,000. They accepted buildings valued at Rs.1,20,000 and paid cash to the firm Rs.30,000". Necessary journal entry would be :

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

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

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

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Dissolution of a Firm means:

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

Match List-I with List-II

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When both the debts of the firm and private debts of a partner co-exist, the Property of the firm as per Section 49 of the Indian Partnership Act, shall apply:

(A) Payment of debts of the firm first.

(B) The surplus, if any, shall be divided among the partners as per their claims, which can not be utilised for payment of their private liabilities.

(C) The surplus, if any, shall be divided among the partners as per their claims, which can be utilised for payment of their private liabilities.

(D) Payment of private debts of the partners first.

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Under which of the following cases, the Court can order the dissolution of a partnership firm?

(A) When a partner persistently commits breach of partnership agreement.

(B) When a partner has transferred the whole of his interest in the firm to a third party.

(C) By the death of a partner.

(D) When the business of the firm cannot be carried on except at a loss.

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At the time of the dissolution of a partnership firm in which X, Y and Z were partners sharing profit in 2:2:1 ratio, the following information was made available. Arrange them in the sequence in which they will be paid.

(A) A's Loan to the firm Rs 50,000

(B) Creditors Rs 2,00,000

(C) A's Capital Rs 2,50,000 , B's Capital Rs 2,00,000 and C's Capital Rs 1,00,000

(D) Balance available after settlement of all the stakeholders.

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A, B and C constituted a partnership to carry out a venture to build offices for Zakash Office Sites Ltd. On the completion of venture under which way the dissolution of a firm will takes place?

At the time of dissolution of a partnership firm, the stock appeared in the books was Rs 35,000. One of the partner took over 50% of the stock at 10% less than its book value, and the remaining stock was sold at a gain of 15%. Find the total amount realized from the stock in cash.

Match List-I with List-II

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Choose the correct statement/ statements related to the dissolution of the firm from the following.

(A) Accumulated profits and reserves are transferred to realisation account.

(B) On dissolution of the firm, the partner's capital accounts are closed through realisation account.

(C) 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 never paid

(D) Partner's loan account is not transferred to realisation account.

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Profit & Loss Adjustment A/c is not prepared in which of the following case?

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

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

(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' loan);

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Match List-I with List-II

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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:

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.

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

Choose the correct sequence of Closing of Ledger Accounts at the time of dissolution of a Partnership Firm.

(A) Closing of Cash at Bank & Cash in hand account.

(B) Realisation of Assets and payment of external liabilities recorded in Realisation Account.

(C) Transfer of Assets and External Liabilities to Realisation Account.

(D) Closing Partner's capital account by settling the final payment to partners or receipt from partners.

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If a partnership firm is being dissolved, a liability taken over by a partner is credited to :

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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.

The amount of sundry assets transferred to Realization account was Rs. 3,60,000; 50% of these have been sold at a profit of Rs. 75,000; 30% of the remaining assets were sold at a discount of 12% and remaining were taken over by Raman (a partner) at 25% above book value. At what value were the assets taken over by Raman :-

Match List-I with List-II

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