Dissolution Of Partnership CBSE Questions & Answers

Dissolution Of Partnership

This is Accountancy Class 12 Dissolution of Partnership CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

Profit or loss on realisation will be divided into

A
Gaining ratio
B
Equally
C
Profit and loss sharing ratio
Correct
D
Sacrificing ratio

When Assets and liabilities are taken over by new company what will be the purchase price

A
All of these
B
Purchase price = Agreed value of assets - agreed value of liabilities
Correct
C
Purchase price = Gross value of assets - agreed value of liabilities
D
Purchase price = Total value of assets - agreed value of liabilities

How Dissolution of Partnership is differ from Dissolution of Partnership Firm

A
None
B
Only the agreement is dissolved, no physical disposal takes place
Correct
C
The Firm is dissolved, by selling off assets and settling liabilities.
D
Both

Choose the current order of priority in settlement of liabilities and capital upon dissolution from items given here (a) Expense incurred on realisation of assets such as commission, cartage, brokerage etc. (b) All outside creditors (c) Balances in Capital Accounts of partners (d) Partner’s Loan accounts. Correct sequence is

A
d,c,b,a
B
a,b,c,d
C
b,a,c,d
D
a, b, d,c
Correct

How goodwill account appear in the Balance sheet be treated in case of dissolution of firm

A
Transferred to realization account at book value
Correct
B
Transferred to capital account at book value
C
Transferred to realization account at market value
D
Transferred to capital account at market value

For Realisation Expenses When expenses are paid by any partner and borne by firm. What should be entry for this transaction

A
Correct
B
C
D

Can a partner's loan be take place in his capital account?

A
If capital account shows a negative figure
Correct
B
On special request of a partner
C
If capital account shows a positive figure
D
Not at all

Firm’s shall pay towards the payment of _______ then the surplus if any shall be applied towards the payment of_____ to the extent of share in surplus

A
Firm’s Debt, Private debt
Correct
B
Private debt, Firm’s Debt
C
Private debt, interest Debt
D
Firm’s Debt, National debt

Match the following and choose the correct option from below:

A
a(ii), b(iii), c(i)
B
a(i), b(iii), c(ii)
Correct
C
a(iii), b(ii), c(i)
D
a(i), b(ii), c(iii)

If ____ appears in the liabilities side of the balance sheet it is also transferred to realization credit side

A
Investment
B
JLP
Correct
C
Building Stock
D
Equipments

If there is no liability on account of workmen’s compensation then the whole amount of workmen’s compensation fund will be credited to

A
Realisation account
B
Partner’s Capital account
Correct
C
Profit and Loss account
D
Revaluation account

What is the accounting treatment of Investment Fluctuation Fund when it is shown in the Balance sheet are transferred to realisation account

A
Debiting Investment Fluctuation Fund account and crediting Bank account
B
Debiting Investment Fluctuation Fund account and crediting Realisation account
Correct
C
Debiting Realisation account and crediting Investment Fluctuation Fund account
D
Debiting Bank account and crediting Realisation account

When a partner capital account shows a debit balance his loan account should be transferred to his Capital account by what amount

A
50 percent amount
B
Whole amount
C
20 percent amount
D
To the extent of Debit Balance
Correct

If creditors accept an asset of the firm in settlement of his debt what account should be debited in this transaction

A
Realisation account
B
Assets Account
C
Partners account
D
No entry to be made
Correct

At the time of dissolution first preference for payment will be given to _____

A
Owner
B
Debtors
C
Creditor
Correct
D
None of these