Class 12 Accountancy Chapter 5 (Part 2) - Dissolution of partnership firm MCQs

Class 12 Accountancy Chapter 5 (Part 2) – Dissolution of partnership firm MCQ Question Answers for CUET 2024

1. On expenses of realisation when actual expenses are paid by the partner on behalf of the firm. Which Account is Debited?

a.Asset A/c

b.Bank A/c

c.Realisation A/c

d.Partner’s Capital A/c

2. On dissolution of a firm, bank overdraft is transferred to

a.Bank Account

b.Overdraft Account

c.Realisation Account

d.Partners Capital Account

3. At the time Dissolution, all the assets of the firm are transferred to the Realisation account At ______ Values

a.Book

b.Economical

c.Realisable

d.Market

4. The _________Account is prepared to record the transactions relating to sale and realisation of assets and settlement of creditors

a.Realisation

b.Profit and loss account

c.Partners’ capital account

d.Revaluation Account

5. On settlement of capital accounts., Which account will be Credited?

a.Partners Current Account

b.Bank Account

c.Partner’s Capital A/c

d.Partners’ Capital Account

6. On payment of liabilities which Account is Credited?

a.Loan Account

b.Realisation account

c.Liability Account

d.Bank account

7. A firm is dissolved compulsorily in the following cases

a.When Unbearable Loss is to be borne By Company

b.When the business of the firm becomes Legal After Incorporation

c.When all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract

d.When a Major Partner gets Retired or dies

8. On dissolution of a firm, partner’s loan account is transferred to

a.realisation account

b.partner’s capital account

c.None of these

d.partner’s current account

9. On sale of assets Which account is debited?

a.Profit and loss A/c

b.Bank A/c

c.Revaluation A/c

d.Realisation A/c

10. On dissolution of the firm, partner’s capital accounts are closed through

a.Bank account

b.Drawing’s account

c.Realisation account

d.Loan account

11. On dissolution of a firm, a partner paid 1,500 Rs. for firm’s realisation expenses. Which account will be Credited?

a.Cash Account

b.Realisation Account

c.Profit & Loss A/c

d.Capital Account of the Partner

12. The accumulated profits reserves are transferred to

a.Bank account

b.Partners’ capital account

c.Realisation account

d.None of these

13. Sundry Creditors amounted to Rs. 10000. These were paid at a discount of 5%. Realisation account will be debited by

a.9000

b.7,600

c.8,400

d.9500

14. ________ Means End of the existence of firm, and no business is transacted after It except the activities related to closing of the firm as the affairs of the firm are to be wound up by selling firm’s assets and paying its liabilities and discharging the claims of the partners.

a.Resolution

b.Dissolution

c.Dispersion

d.Reconstruction

15. When the firm has agreed to pay the partner a fixed amount for realisation work irrespective of the actual amount spent, such fixed amount is debited to _________Account and Credited to __________Account

a.Capital, Realisation

b.Realisation, Expenses

c.Partners’ Capital, Realisation

d.Realisation, Capital

16. At the time of dissolution of partnership firm, the amount of ‘Bills Payable’ shown in the liability side of Balance Sheet is transferred to:

a.Loan Account of Partners

b.Capital Accounts of Partners

c.Cash Account

d.Realisation Account

17. On dissolution, when a partner takes over an asset is debited

a.Asset Account

b.Realisation Account

c.Cash Account

d.Partner’s Capital Account

18. On dissolution of a firm, out of the proceeds received from the sale of assets will be paid first of all

a.Partner’s additional capital

b.Partner’s Capital

c.Outside Creditors

d.Partner’s Loan to Firm

19. If total assets are Rs. 2,00,000; total liabilities are Rs. 40,000; amount realised on sale of assets is Rs. 1,75,000 and realisation expenses are Rs. 3,000, the profit or loss on realisation will be:

a.Loss Rs 68,000

b.Loss Rs 25,000

c.Loss Rs 28,000

d.Profit Rs12,000

20. Reason for which a dissolution is undertaken by court

a.when a partner has transferred the whole of his interest in the firm to a third party;

b.when a partner becomes permanently incapable of performing his duties as a partner;

c.when a partner becomes insane

d.All of the Above