Q1:

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.

Amount of Assets realized debited to Bank Account will be:

₹ 1,89,000

₹ 1,55,000

₹ 1,89,600

₹ 1,55,600

Correct Answer

Option 1

Correct Answer

Explanation

Q2:

2025: 16 May Shift 1

Partnership

>

Dissolution

Hard

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.

Bank A/c is credited by the Realisation A/c by _______ amount in total.

Rs 20,000

Rs 75,620

Rs 97,620

Rs 95,620

Correct Answer

Option 3

Correct Answer

Explanation

Q3:

2025: 16 May Shift 1

Partnership

>

Dissolution

Easy

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.

For taking over investment, Bharat's capital will be

Debited by 18,000

Credited by 18,000

Debited by 9,000

Credited by 9,000

Correct Answer

Option 3

Correct Answer

Explanation

Q4:

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.

Investment Fluctuation Reserve will be

Transferred to debit side of realization A/c

Transferred to credit side of realization A/c

Distributed amongst partners in profit sharing ratio

Subtracted from Value of Investment

Correct Answer

Option 2

Correct Answer

Explanation

Q5:

2025: 15 May Shift 2

Partnership

>

Dissolution

Medium

In which of the following case court can order dissolution of a partnership firm.

On the death of a partner

On the expiry of term of partnership

When business cannot be carried on except at a loss.

When a partner become insolvent.

Correct Answer

Option 3

Correct Answer

Explanation

Q6:

2025: 15 May Shift 2

Partnership

>

Dissolution

Medium

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

Admission of a partner

With the consent of all the partners.

Death of a partner

Retirement of a partner

Correct Answer

Option 2

Correct Answer

Explanation

Q7:

2025: 15 May Shift 2

Partnership

>

Dissolution

Easy

In case of dissolution of a partnership firm, losses, including deficiencies of capital, shall be paid first out of ...............

Capital of partners

Profits

Partners individual contribution in their profit sharing ratio

Borrowings

Correct Answer

Option 2

Correct Answer

Explanation

Q8:

2025: 15 May Shift 2

Partnership

>

Dissolution

Easy

Neil, Kapil, Sunil started a furniture business in partnership. After one year of their operation, they started exporting Opium by keeping them in blank spaces between the furniture. As authorities came to know about the illegal business of the firm, they will compel them for .......

Changing partner's

Dissolution by Agreement

To continue business by imposing fine

Compulsory Dissolution

Correct Answer

Option 4

Correct Answer

Explanation

Q9:

2025: 15 May Shift 2

Partnership

>

Dissolution

Easy

Which of the following event take place in the case of dissolution of a partnership firm

Court does not intervene

Business is not terminated

Economic relations between the partners comes to an end.

Assets and Liabilities are revalued

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2025: 15 May Shift 1

Partnership

>

Dissolution

Easy

According to which section of the partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm?

Section 32

Section 35

Section 37

Section 39

Correct Answer

Option 4

Correct Answer

Explanation

Q11:

2025: 15 May Shift 1

Partnership

>

Dissolution

Medium

Stock at the time of dissolution was appearing in books at Rs 50,000. Half of the stock was sold at a discount of 20% and the remaining was taken over by one of the partners at a 10% discount. What amount was received in cash at the time of realization of stock.

Rs. 25,000

Rs. 42,500

Rs. 20,000

Rs. 45000

Correct Answer

Option 3

Correct Answer

Explanation

Q12:

2025: 15 May Shift 1

Partnership

>

Dissolution

Medium

Match List-I with List-II

List-I	List-II
(A) Payment of loans due to partners	(I) Realisation A/c Dr To Bank A/c
(B) For settlement of partners' accounts, in case their capital account shows a debit balance	(II) Bank A/c Dr. A/c To loan to partners
(C) For settlement of loan by a firm to a partner	(III) Bank A/c Dr. To Partner's Capital A/c
(D) For settlement of any unrecorded liability	(IV) Partner's Loan A/c Dr. To Bank A/c

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q13:

2025: 15 May Shift 1

Partnership

>

Dissolution

Medium

Match List-I with List-II

List-I	List-II
(A) Compulsory Dissolution	(I) Partner becomes insane
(B) Dissolution by notice	(II) Death of a partner
(C) Dissolution by Court	(III) Business become illegal
(D) Dissolution on certain contingencies	(IV) Partnership at will

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q14:

2025: 15 May Shift 1

Partnership

>

Dissolution

Easy

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).

(C) Each partner proportionately what is due to him on account of capital.

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

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q15:

2025: 14 May Shift 2

Partnership

>

Dissolution

Easy

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

Q16:

2025: 14 May Shift 2

Partnership

>

Dissolution

Easy

On dissolution of the firm, partner's capital accounts are closed through-

Realisation Account

Drawings Account

Bank Account

Loan Account

Correct Answer

Option 3

Correct Answer

Explanation

Q17:

2025: 14 May Shift 2

Partnership

>

Dissolution

Medium

The Court may order a partnership firm to be dissolved in which of the following case?

When the business of the firm becomes illegal

On the death of a partner

When a partner becomes insane

On the expiry of the term of the partnership

Correct Answer

Option 3

Correct Answer

Explanation

Q18:

2025: 14 May Shift 2

Partnership

>

Dissolution

Medium

Which combination of statements is true about dissolution-

(A) Dissolution of a partnership is different from dissolution of a firm.

(B) A partnership is dissolved when there is a death of a partner.

(C) A firm is dissolved when all partners give consent to it.

(D) A firm is compulsorily dissolved when a partner decides to retire.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q19:

2025: 14 May Shift 2

Partnership

>

Dissolution

Medium

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

Realisation Account

Partner's Capital Account

Partner's Loan Account

Revaluation Account

Correct Answer

Option 2

Correct Answer

Explanation

Q20:

2025: 14 May Shift 1

Partnership

>

Dissolution

Medium

Unrecorded liabilities when paid are shown in:

Debit of Realisation Account

Debit of Bank Account

Credit of Realisation Account

Not shown anywhere

Correct Answer

Option 1

Correct Answer

Explanation

Q21:

2025: 14 May Shift 1

Partnership

>

Dissolution

Medium

Which of the following combination of statements are true about dissolution-

(A) A firm is compulsorily dissolved when a partner decide to retire.

(B) Dissolution of a partnership is different from dissolution of a firm.

(C) A partnership is dissolved when there is a death of a partner.

(D) Dissolution of a firm necessarily involves dissolution of partnership.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q22:

2025: 14 May Shift 1

Partnership

>

Dissolution

Easy

In case of dissolution of a firm, Losses including deficiencies of capital, shall be paid first out of ....

Capital of partners

Amount provided by partners individually in thier profit sharing ratio.

Profit

Debts

Correct Answer

Option 3

Correct Answer

Explanation

Q23:

2025: 14 May Shift 1

Partnership

>

Dissolution

Easy

Dissolution of a firm cannot take place in which of the situation:

Dissolution by Agreement

On the happening of certain contingencies

Dissolution by Court

Voluntary retirement by any one partner

Correct Answer

Option 4

Correct Answer

Explanation

Q24:

2025: 14 May Shift 1

Partnership

>

Dissolution

Easy

On dissolution of a firm, partner's loan account is transferred to:

Bank Account

Realisation Account

Partner's Capital Account

Partner's Current Account

Correct Answer

Option 1

Correct Answer

Explanation

Q25:

2025: 13 May Shift 2

Partnership

>

Dissolution

Easy

Arrange the following in correct order in which assets of the firm can be used in there settlement.

(A) Residue shall be divided between the partners in their profit sharing ratio.

(B) In paying the partners proportionately what is due to him/her on account of capital.

(C) In paying the partners proportionately what is due to him/her from the firm for advances/loans.

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

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q26:

2025: 13 May Shift 2

Partnership

>

Dissolution

Easy

In which of the following the Economic relationship between the partners comes to an end?

Dissolution of partnership

Dissolution of partnership firm

Retirement of a partner

Death of a partner

Correct Answer

Option 2

Correct Answer

Explanation

Q27:

2025: 13 May Shift 2

Partnership

>

Dissolution

Easy

Unrecorded liabilities when paid at the time of dissolution of a partnership firm, are shown in:

Debit of Realisation Account

Debit of Bank Account

Credit of Realisation Account

Credit of Bank Account

Correct Answer

Option 1

Correct Answer

Explanation

Q28:

2025: 13 May Shift 2

Partnership

>

Dissolution

Medium

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

Q29:

2025: 13 May Shift 2

Partnership

>

Dissolution

Easy

When the business of the partnership firm becomes illegal, it leads to dissolution of the firm under ___________?

Compulsory dissolution

Dissolution by the Court

Dissolution by agreement

Dissolution on the happening of certain contingencies

Correct Answer

Option 1

Correct Answer

Explanation

Q30:

2025: 13 May Shift 1

Partnership

>

Dissolution

Easy

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

CUET Accountancy: PartnershipDissolution. Free, no login required.

Q1:

Comprehension

Balance Sheet Ashwani and Bharat as on March 31, 2024

Q2:

Comprehension

Balance Sheet Ashwani and Bharat as on March 31, 2024

Q3:

Comprehension

Balance Sheet Ashwani and Bharat as on March 31, 2024

Q4:

Comprehension

Balance Sheet Ashwani and Bharat as on March 31, 2024

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CUET Accountancy Past Year Questions (Topic-Wise)