Case Based MCQs of Dissolution of Partnership Firm Class 12 with answers
Case Based MCQs of Dissolution of Partnership Firm Class 12 with answers
L, T and D are partners in a firm sharing Profits and Losses in the ratio of 4 : 3 : 2. Balance Sheet of the firm as on 31st March, 2024 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 83,000 | Goodwill | 70,000 |
| Bills Payable | 37,000 | Building | 82,000 |
| T’s Loan | 40,000 | Machinery | 1,10,000 |
| Workmen Compensation Reserve | 63,000 | Prepaid Inurance | 25,000 |
| Capital A/cs: L T | 2,68,000 1,89,000 | Furniture | 45,000 |
| Debtors 1,20,000 Less: Provision 18,000 | 1,02,000 | ||
| Stock | 40,000 | ||
| Bank | 15,000 | ||
| Profit & Loss A/c | 72,000 | ||
| Capital A/c: D | 1,19,000 | ||
| 6,80,000 | 6,80,000 |
On 1st April, 2024 they decided to dissolve their partnership as it can not be carried on except at a loss and following terms and conditions were agreed upon:
- Half of the stock expired and sold at 20% Discount and T took over remaining stock at half the price.
- Bad Debts were ₹ 25,000 and Debtors realised at a Discount of 20%
- Sundry Creditors accepted Machinery at Book Value and paid the balance
- Building realised ₹ 1,40,000.
- L took goodwill of the firm at a value of ₹ 54,000.
- Realisation expenses were ₹ 17,200 met by D and liability for Workmen Compensation Was ₹ 45,000.
Q. 1. How is workmen Compensation Reserve treated in this situation?
(a) Workmen Compensation Reserve (₹ 63,000) is distributed among the partners in their profit-sharing ratio.
(b) workmen Compensation Reserve (₹ 63,000) is distributed among the partners in their profit-sharing ratio and liability for Workmen Compensation (₹ 45,000) is transferred (Credited) to Realisation Account.
(c) Amount equal to liability (₹ 45,000) is transferred (credited) to Realisation Account and the balance amount of Workmen Compensation Reserve (₹ 18,000) is transferred (Credited) to Capital Accounts of partners in their profit-sharing ratio.
(d) Total amount of Workmen Compensation Reserve (₹ 63,000) is transferred (credited) to Realisation Account.
Ans – (d)
Q. 2. Debtors Realised
(a) ₹ 76,000
(b) ₹ 33,500
(c) ₹ 96,000
(d) ₹ 72,700
Ans – (a)
Q. 3. Assets Realised
(a) ₹ 2,30,000
(b) ₹ 3,04,000
(c) ₹ 2,57,900
(d) ₹ 2,62,700
Ans – (b)
Q. 4. Total amount paid to outside parties by the firm is
(a) ₹ 1,65,000
(b) ₹ 83,500
(c) ₹ 1,62,700
(d) ₹ 82,000
Ans – (d)
Rose, Tulip and Daisy are partners in a firm sharing profits and losses equally. Balance Sheet of the firm as on 31st March, 2025 was as follows:
Balance Sheet
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 83,000 | Goodwill | 72,000 |
| Mr. Daisy’s Loan | 37,000 | Building | 80,000 |
| Tulip’s Loan | 40,000 | Machinery | 1,10,000 |
| Investments Fluctuation Reserve | 23,000 | Prepaid Insurance | 25,000 |
| Capital A/cs: Rose Tulip | 2,42,000 1,97,000 | Investment | 45,000 |
| Debtors 1,20,000 Less: Provision 18,000 | 1,02,000 | ||
| Stock | 40,000 | ||
| Bank | 15,000 | ||
| Profit & Loss A/c | 72,000 | ||
| Capital A/c: Daisy | 61,000 | ||
| 6,22,000 | 6,22,000 |
On 1st April, 2025 court dissolved their partnership as Tulip is found guilty of misconduct and following terms and conditions were agreed upon:
- Daisy agreed to pay her husband’s loan
- Half of the Debtors realised ₹ 42,000 and remaining debtors were used to pay half the creditors.
- Investment sold to Lily for ₹ 57,000.
- Building and Machinery realised at ₹ 1,52,000.
- Remaining creditors were to be paid after two months, they were paid immediately at 6% p.a. Discount.
- Stock taken by Rose at 30% discount.
- Realisation expenses were ₹ 3,915 and were paid by Tulip.
Q. Investment Fluctuation Reserve will be
(a) Distributed (credited) among the partners in their profit-sharing ratio.
(b) Transferred (credited) to Realisation Account.
(c) Transferred (debited) to Realisation Account.
(d) Distributed (debited) among the partners in their profit-sharing ratio.
Ans – (b)
Q. 2 Cash paid to creditors is
(a) ₹ 41,085
(b) ₹ 43,500
(c) ₹ 62,700
(d) ₹ 82,720
Ans – (a)
Q. 3. Profit & Loss Account will be
(a) Distributed (credited) among the partners in their profit-sharing ratio.
(b) Transferred (credited) to Realisation Account
(c) Transferred (debited) to Realisation Account
(d) Written off (debited) among the partners in their profit-sharing ratio
Ans – (d)
