Q1:

2025: 26 May Shift 2

Partnership

>

Dissolution

Medium

Financial Statements

Match List-I with List-II

List-I	List-II
(A) Dissolution of firm by agreement	(I) When a partner becomes insane
(B) Compulsory dissolution of firm	(II) With the consent of all partners
(C) Dissolution of firm by notice	(III) When business of a firm becomes illegal
(D) Dissolution of firm by Court	(IV) At the request of any one partner

Choose the correct answer from the options given below:

(A) - (II), (B) - (III), (C) - (I), (D) - (IV)

(A) - (II), (B) - (III), (C) - (IV), (D) - (I)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 2

Correct Answer

Explanation

Q2:

2025: 24 May Shift 1

Partnership

>

Dissolution

Easy

Common

In case of dissolution of partnership firm, any liability assumed/paid by a partner is shown on ........?

Debit of Realisation Account

Debit of Bank Account

Credit of Realisation Account

Credit of Bank Account

Correct Answer

Option 1

Correct Answer

Explanation

Q3:

2025: 24 May Shift 1

Partnership

>

Dissolution

Easy

Common

All assets except cash/bank and fictitious assets are transferred to the Debit side of the ______Account.

Realisation Account

Capital Account

Revaluation Account

Current Account

Correct Answer

Option 1

Correct Answer

Explanation

Q4:

2025: 24 May Shift 1

Partnership

>

Dissolution

Medium

Common

Which of the following statements truly makes the distinction between Dissolution of Partnership and Dissolution of Firm:

(A) In dissolution of partnership, business is not terminated, while in dissolution of firm business is terminated.

(B) The Court intervenes in dissolution of Partnership because a partnership is not dissolved by mutual agreement. A firm can not be dissolved by court order.

(C) Economic relationships between partners continue in a changed form in dissolution of partnership. Economic relationships between the partners come to an end at the dissolution of the Firm.

(D) Dissolution of Partnership doesn't require permanent closure of books, while in Dissolution of firm books are closed.

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (C) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation

Q5:

2025: 24 May Shift 1

Partnership

>

Dissolution

Medium

Common

Dissolution of a firm takes place on the happening of certain contingencies. Choose them from the following :

(A) By the death of a partner

(B) By the adjudication of a partner as an insolvent

(C) When the business of the firm becomes illegal

(D) If constituted for a fixed term, by the expiry of that term

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D) only

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation

Q6:

2025: 22 May Shift 2

Partnership

>

Dissolution

Easy

Common

On the dissolution of a firm, creditors is transferred to:

Cash Account

Bank Account

Realisation Account

Partners Capital Account

Correct Answer

Option 3

Correct Answer

Explanation

Q7:

2025: 22 May Shift 2

Partnership

>

Dissolution

Easy

Common

According to Section ………. of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

36

37

38

39

Correct Answer

Option 4

Correct Answer

Explanation

Q8:

2025: 22 May Shift 2

Partnership

>

Dissolution

Easy

Common

When a partnership firm is dissolved, final payment made to partners is transferred to

Realisation A/C

Partner's Loan A/C

Partner's Current A/C

Bank A/C

Correct Answer

Option 4

Correct Answer

Explanation

Q9:

2025: 22 May Shift 2

Partnership

>

Dissolution

Medium

Common

Which of the following indicate the situation of compulsory dissolution.

When a partner becomes insane.

On the death of a partner

When the business of the firm becomes illegal.

When a partner becomes permanently incapable of performing his duties as a partner

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2025: 22 May Shift 2

Partnership

>

Dissolution

Medium

Common

Match List-I with List-II

List-I	List-II
(Transaction)	(Relevant account)
(A) Settlement of Partners Loan	(I) Credit side of Realization A/c
(B) Transfer of liabilities	(II) Partner's Capital will be credited
(C) Transfer of Assets	(III) Credit Side of Bank A/c
(D) Remuneration payable to partner	(IV) Debit Side of Realization A/c

Choose the correct answer from the options given below:

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 2

Correct Answer

Explanation

Q11:

2025: 22 May Shift 2

Partnership

>

Dissolution

Easy

Common

Which of the following are the ways for the dissolution of a firm?

(A) Dissolution by Notice

(B) Dissolution by agreement

(C) Dissolution by court

(D) Dissolution by not terminating business

Choose the correct answer from the options given below:

(A), (B) and (C) only

(A), (C) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation

Q12:

2025: 22 May Shift 2

Partnership

>

Dissolution

Easy

Common

The assets of the firm, including any sum contributed by the partners to make deficiencies of capital, shall be applied first for paying ………….

Each partner proportionately for any advances made to firm.

Debts of the firm to the third parties

Paying partners proportionately for their capital balances.

Partners in their profit sharing ratio.

Correct Answer

Option 2

Correct Answer

Explanation

Q13:

2025: 22 May Shift 2

Partnership

>

Dissolution

Medium

Common

In case of dissolution Machine costing Rs 20,000, alongwith cash of Rs 5,000 were given to creditors of Rs 30,000 in full settlement of their claim.

In this case Realisation A/c will be Debited with ………….

Rs 30,000

Rs 25,000

Rs 15,000

Rs 5,000

Correct Answer

Option 4

Correct Answer

Explanation

Q14:

2025: 22 May Shift 2

Partnership

>

Dissolution

Medium

Common

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

Realisation A/C

Partner's Capital A/C

Partner's Loan A/C

Bank A/C

Correct Answer

Option 2

Correct Answer

Explanation

Q15:

2025: 22 May Shift 2

Partnership

>

Dissolution

Medium

Common

Ram, a partner, has been assigned the responsibility for realization of assets and settlement of liability for which he will be given remuneration of ₹ 10,000. He has to bear all the realization expenses. Actual realization expenses are 12,000. Journal Entry will be

Realisation A/C.....Dr. 10,000

To Ram's Capital A/C 10,000

Realisation A/C.....Dr. 12,000

To Ram's Capital A/C 12,000

Realisation A/C.....Dr. 10,000

To Bank A/C 10,000

Realisation A/C.....Dr. 12,000

To Bank A/C 12,000

Correct Answer

Option 1

Correct Answer

Explanation

Q16:

2025: 22 May Shift 2

Partnership

>

Dissolution

Medium

Common

If the asset is taken over by the creditor in lieu of the amount due to him, then the journal entry will be:

Creditor A/C..Dr.

To Realisation A/C

Realisation A/C..Dr.

To Creditor A/C

No entry

Realisation A/C..Dr.

To Asset A/C

Correct Answer

Option 3

Correct Answer

Explanation

Q17:

2025: 22 May Shift 1

Partnership

>

Dissolution

Medium

Common

When realisation expenses are paid by the firm on behalf of a partner, which among the following will be debited:

Realisation Account

Partner's Capital Account

Partner's Loan Account

Expense Account

Correct Answer

Option 2

Correct Answer

Explanation

Q18:

2025: 22 May Shift 1

Partnership

>

Dissolution

Easy

Common

The assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be utilized in which sequence? Arrange the following in proper sequence

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

(B) 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)

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

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

Choose the correct answer from the options given below:

(C), (B), (D), (A)

(A), (B), (D), (C)

(B), (A), (D), (C)

(A), (B), (C), (D)

Correct Answer

Option 4

Correct Answer

Explanation

Q19:

2025: 22 May Shift 1

Partnership

>

Dissolution

Easy

Common

Partner's current accounts are transferred to the respective partners' ________ at the time of dissolution of a partnership.

Capital account

Loan account

Drawings account

No transfer of current accounts

Correct Answer

Option 1

Correct Answer

Explanation

Q20:

2025: 22 May Shift 1

Partnership

>

Dissolution

Easy

Common

One of the partner took-over furniture at the time of dissolution of the firm, which account will be debited:

Realisation Account

Partner's Current Account

Partner's Loan Account

Partner's Capital Account

Correct Answer

Option 4

Correct Answer

Explanation

Q21:

2025: 22 May Shift 1

Partnership

>

Dissolution

Easy

Common

In case of the dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. Losses, including deficiencies of capital, shall be paid in the following manner and order:

(A) Out of capital of partners.

(B) By the partners individually in their profit sharing ratio.

(C) Profits.

Choose the correct answer from the options given below:

(B), (A), (C)

(C), (A), (B)

(B), (C), (A)

(C), (B), (A)

Correct Answer

Option 2

Correct Answer

Explanation

Q22:

2025: 22 May Shift 1

Partnership

>

Dissolution

Easy

Common

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

Realisation Account in Equal Ratio

Realisation Account in Profit Sharing Ratio

Capital Accounts in Equal Ratio

Capital Accounts in Profit Sharing Ratio

Correct Answer

Option 4

Correct Answer

Explanation

Q23:

2025: 22 May Shift 1

Partnership

>

Dissolution

Easy

Common

In the case of the Dissolution of partnership firm, which accounts are opened:

(A) Realization Account

(B) Revaluation Account

(C) Partners Capital Account

(D) Bank Account

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(A), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q24:

2025: 22 May Shift 1

Partnership

>

Dissolution

Medium

Common

Dissolution of a firm takes place on the happening of certain contingencies in the following cases:

(A) By the death of a partner

(B) By the adjudication of a partner as an insolvent

(C) When the business of the firm becomes illegal

(D) If constituted for a fixed term, by the expiry of that term

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation

Q25:

2025: 22 May Shift 1

Partnership

>

Dissolution

Easy

Common

When a firm is dissolved with the consent of all the partners, it is called:

Compulsory Dissolution

Dissolution by Notice

Dissolution by Court

Dissolution by Agreement

Correct Answer

Option 4

Correct Answer

Explanation

Q26:

2025: 16 May Shift 1

Partnership

>

Dissolution

Medium

Match List-I with List-II

List-I	List-II
(A) Meaning of Dissolution	(I) Section 49,of the partnership Act 1932
(B) Application of Assets	(II) Section 39,of the partnership Act 1932
(C) Private Debts Vs Firm's Debts	(III) Section 4,of the partnership Act 1932
(D) Nature of Partnership	(IV) Section 48,of the partnership Act 1932

Choose the correct answer from the options given below:

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (II), (B) - (IV), (C) - (III), (D) - (I)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

Correct Answer

Option 4

Correct Answer

Explanation

Q27:

2025: 16 May Shift 1

Partnership

>

Dissolution

Easy

Valuation of goodwill is not done in which of the following case?

Change in profit sharing ratio

Admission of a new partner

Retirement of a partner

Purchasing of raw material

Correct Answer

Option 4

Correct Answer

Explanation

Q28:

2025: 16 May Shift 1

Partnership

>

Dissolution

Hard

Match List-I with List-II

List-I	List-II
(A) Increase in assets at the time of retirement	(I) Debit side of Realisation Account
(B) Asset taken over by the partner at the time of dissolution of the firm	(II) Credit side of Revaluation Account
(C) Unrecorded Liability at the time of admission of the partner	(III) Credit side of Realisation Account
(D) Remuneration paid for realization of assets	(IV) Debit side of Revaluation Account

Choose the correct answer from the options given below:

(A) - (II), (B) - (III), (C) - (IV), (D) - (I)

(A) - (IV), (B) - (III), (C) - (II), (D) - (I)

(A) - (IV), (B) - (II), (C) - (III), (D) - (I)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

Correct Answer

Option 1

Correct Answer

Explanation

Q29:

2025: 16 May Shift 1

Partnership

>

Dissolution

Easy

While settlement of Accounts, what should be the order of application of assets of Firm

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

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

(C) divided among the partners in their profit sharing ratio.

(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)

Choose the correct answer from the options given below:

(A), (D), (C), (B)

(A), (D), (B), (C)

(B), (A), (D), (C)

(A), (B), (D), (C)

Correct Answer

Option 2

Correct Answer

Explanation

Q30:

2025: 16 May Shift 1

Partnership

>

Dissolution

Medium

Comprehension

From the information provided below, calculate various questions asked in questions

Following is the Balance Sheet of Ashwani and Bharat on March 31, 2024.

Balance Sheet Ashwani and Bharat as on March 31, 2024

Liabilities	Amount ( $₹$ )	Assets	Amount ( $₹$ )
Creditors	$76,000$	Cash at bank	$17,000$
Mrs.Ashwani's loan	$10,000$	Stock	$10,000$
Mrs.Bharat loan	$20,000$	Investments	$20,000$
Investment fluctuation reserve	$2,000$	Debtors $\quad 40,000$ Less: Provision for doubtful debts $\quad 4,000$	$36,000$
General Reserve	$20,000$	Buildings	$70,000$
Capitals: Ashwani $20,000$ Bharat $20,000$	$40,000$	Goodwill	$15,000$
Total	$1,68,000$	Total	$1,68,000$

The firm was dissolved on that date. The following was agreed transactions took place:

Ashwani promised to pay Mrs. Ashwani’s loan and took away stock for Rs. 8,000.
Bharat took away half of the investment at 10% less. Debtors realised for Rs. 38,000. Creditor’s were paid at less of Rs. 380. Buildings realised for Rs. 1,30,000. Goodwill Rs. 12,000 and the remaining Investment were sold at Rs. 9,000. An old typewriter not recorded in the books was taken over by Bharat for Rs. 600. Realisation expenses amounted to Rs. 2,000.

Realization profit of 55,980 to be distributed amongst partners is:

Ashwani's Capital 29,790 ; Bharat's Capital 29,790

Ashwani's Capital 27,990 ; Bharat's Capital 27,990

Ashwani's Capital 27,790 ; Bharat's Capital 27,790

Ashwani's Capital 29,770 ; Bharat's Capital 29,770

Correct Answer

Option 2

Correct Answer

Explanation

CUET Accountancy: PartnershipDissolution. Free, no login required.

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Comprehension

Balance Sheet Ashwani and Bharat as on March 31, 2024

CUET Accountancy Past Year Questions (Topic-Wise)