Xii Mcqs CH - 8 Dissolution of Partnership Firm

DISSOLUTION OF PARTNERSHIP
CH- 8: MCQs DISSOLUTIO OF PARTNERSHIP
A. Choose the correct alternative for the following:
1. New ratio is not to be calculated on:

a. Admission of a partner
b. retirement of a partner
c. death of a partner
d. dissolution of a partnership
2. At the time of dissolution of partnership an unrecorded asset taken by X a partner is
debited to:
a. X capital account
b. realisation account
c. cash account
d. none of the above
3. On firm's dissolution which of the following account is prepared at the last?
a. Realisation account
b. partners capital account
c. cash account partners
d. loan account
4. On dissolution of a firm fictitious assets are transferred to:

a. credit side of partners capital account
b. debit side of realisation account
c. debit side of partners capital account
d. credit side of realisation account
5. On dissolution of a firm in which ratio profit and loss on realisation is distributed

among the partners:
a. capital ratio
b. profit sharing ratio
c. equally
d. in the ratio of amount due to each partner.
6. On dissolution of the firm amount received from sale of unrecorded asset is credited
to :
a. partner’s capital account:
b. profit and loss account
c. cash account
d. realisation account
7. Realisation account is a :
a. personal account
b. real account
c. nominal account
d. none of the above.
8. At the time of firm's dissolution credit balance of profit and loss account is credited
to :
a. realisation account
b. partners capital account
c. cash account
1
d. profit and loss account.

9. On dissolution of a firm Goodwill appearing in the balance sheet is transferred to:
a. capital account of partners
b. cash account
c. debit side of realisation account
d. credit side of realisation account.
10. On dissolution the balance of partners capital account appearing on the credit side of
the balance sheet is transferred to :
a. debit side of realisation account
b. credit side of realisation account
d. credit side of partners capital account.
11. AB and C are partners. The firm had given a loan of Rs20,000 to B. They decided to
dissolve the firm. In the event of dissolution the loan will be settled by transferring it
to the:
b. transferring it to the credit side of realisation account
c. transfer it to the debit side of B's capital account
d. B paying A and C privately.
12. In case of dissolution, total creditors of the firm were Rs40,000; creditors worth
Rs10000 were given a piece of furniture costing Rs8000 in full and final settlement.
Remaining creditors allowed a discount of 10%. What will be the the amount with
which cash will be credited in the realisation account for payment to creditors:
a. 28,000
b. 27,000correct.
c. 20,000
d. 25,000
13. In case of dissolution A one of the partner was paid only RS5000 for his loan to the
firm which amounted to Rs5500. Rs 500 will be recorded in which account and on
which side:
a. Realisation account credit side correct
b. Realisation account debit side
c. loan account debit side
d. A's capital account credit side.
14. Section 41 of partnership act 1932 deals with dissolution of a firm
a. by mutual agreement
b. compulsory dissolution correct
c. by notice
d. by order of court.
15. Settlement of accounts in case of dissolution of partnership is dealt with which section
of partnership act 1932?
a. Section 45
b. section 46
c. section 47
d. section 48
16. In case of dissolution of partnership there was no workmen compensation fund and
firm had to pay Rs3000 as compensation to workers where will be this Rs3000
recorded in the books of accounts?
b. credit side of realisation account
2

d. credit side of partners capital account.
17. Court may order dissolution of partnership firm
a. when a partner has become of unsound mind
b. when a partner is permanently incapacitated
c. when a partner is found guilty of misconduct
d. all of the above.
18. Which of the following is paid first in case of dissolution of partnership firm?
a. Realisation expenses
b. External liabilities
c. Secured loan
d. Partner’s loan
19. At the time of dissolution total assets are worth Rs3,00,000 and external liabilities are
worth Rs1,20,000. If assets realised 120% and realisation expenses paid were
Rs4,000, then profit/loss on realisation will be:
a. Profit Rs60,000
b. Loss Rs60,000
c. Loss Rs56,000
d. Profit Rs56,000
20. When realisation expenses are to be borne by a partner, actual realisation expense is
credited to:
a. Partners capital a/c
b. Cash a/c
c. Realisation a/c
d. None of the above
ANSWERS:
1.D 2.A 3. C 4.C 5.B 6.D 7.C 8.B 9. C 10.D
11. C 12. B 13. A 14. B 15. 16. A 17. D 18. A 19. D 20. D
D
B. FILL IN THE BLANKS:

1. At the time of admission partnership firm is dissolved if business is _____________.
2. All the accounts are settled among partners and creditors at the time of
______________of a business.
3. First of all____________ of the firms will be settled out of sources of the business.
4. Admission of a partner is termination of _____________and not a dissolution of
____________ .
5. Court may also dissolve a firm, if a partner ______________a suit, that one of the
partners is of___________ mind .
6. Partners are liable to settle the account of accounts payable even from their
___________sources, if they are solvent.
7. ______________of partner will be paid off, before the settlement of partner's
capital.
8. If all partners mutually decide for the dissolution, it will be dissolution of
the__________ .
3
[Answers:1. Discontinued; 2. Dissolution; 3.liabilities; 4. Agreement,firm ; 5.files, unsound;

6. personal ; 7. Loan 8. Firm]
C. Match the following:
Account opened to find profit/loss on sale of Realisation profit

Assets and settlement of liabilities.
Credit balance in the realisation account. Realisation
Conversion of assets into cash on dissolution of Realisation a/c
firm.
Liability likely to arise in future on happening Contingent liability
of certain events.
Expenses incurred on dissolution of a firm. Realisation expenses

Xii Mcqs CH - 8 Dissolution of Partnership Firm

Uploaded by

Copyright:

Available Formats

Xii Mcqs CH - 8 Dissolution of Partnership Firm

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Xii Mcqs CH - 8 Dissolution of Partnership Firm

Uploaded by

Copyright:

Available Formats

DISSOLUTION OF PARTNERSHIP

CH- 8: MCQs DISSOLUTIO OF PARTNERSHIP

A. Choose the correct alternative for the following:

1. New ratio is not to be calculated on:

4. On dissolution of a firm fictitious assets are transferred to:

5. On dissolution of a firm in which ratio profit and loss on realisation is distributed

d. profit and loss account.

c. debit side of partners capital account

B. FILL IN THE BLANKS:

[Answers:1. Discontinued; 2. Dissolution; 3.liabilities; 4. Agreement,firm ; 5.files, unsound;

C. Match the following:

Account opened to find profit/loss on sale of Realisation profit

You might also like