[CUET] Assertion Reason MCQs of Dissolution of Partnership Firm Accountancy with Answers
Looking for Assertion Reason MCQs of Dissolution of Partnership Firm of Accountancy for class 12, CUET for CBSE, ISC, and State Board.
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Assertion (A): Dissolution of partnership refers to a change in the existing agreement among the partners.
Reason (R): In case of dissolution of partnership the firm continues its business and books of accounts need not be closed.
In the context of the above two statements, which of the following is correct?
Codes:
(a) Assertion (A) and Reason (R) both are correct and (R) correctly explains (A).
(b) Both Assertion (A) and Reason (R) are correct but (R) does not correctly explain (A).
(c) Both Assertion (A) and Reason (R) are incorrect
(d) Assertion (A) is correct but Reason (R) is incorrect
Ans:- (a)
Assertion (A): The partner’s Private Property can be applied to pay the firm’s debt.
Reason (R): In a partnership firm, partners have unlimited liability.
Options:
a) Assertion (A) and Reason (R) are correct but the reason (R) is not the correct explanation of Assertion (A)
b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
c) Only Assertion (A) is correct.
d) Assertion (A) is not correct but the Reason (R) is correct.
Ans:- b)
Assertion (A): On dissolution of a partnership firm, bank overdraft is first transferred to the credit side of realisation account and then paid off.
Reason (R): Bank Overdraft is a third party liability and hence transferred to Realisation Account.
In the context of the above two statements, which of the following is correct?
Options:
(a) Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of (A)
(b) Both Assertion (A) and Reason (R) are correct but (R) is not the correct explanation of (A)
(c) Only Assertion (A) is correct
(d) Both Assertion (A) and Reason (R) are wrong.
Ans – (a)
Assertion (A): A loan from a partner is not transferred to Realisation Account.
Reason (R): A loan from a partner is not an external liability but is discharged before repayment of capital.
Options:
a) Assertion (A) and Reason (R) are correct but the reason (R) is not the correct explanation of Assertion (A)
b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
c) Only Assertion (A) is correct.
d) Both Assertion (A) and Reason (R) are not correct.
Ans:- b)
Assertion (A): Loan from a partner is not transferred to Realisation Account.
Reason (R): Loan from a partner is not an outside liability. it is repaid prior to repayment of Capitals of partners.
Options
(a) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(c) Both Assertion (A) and Reason (R) are false
(d) Assertion (A) is false, but Reason (R) is true
Ans:- (b)
Assertion (A): A loan from a relative of a partner is an external liability.
Reason (R): It is not transferred to the Realisation Account.
Options:
a) Assertion (A) and Reason (R) are correct but the reason (R) is not the correct explanation of Assertion (A)
b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
c) Assertion (A) is correct but the Reason (R) is not correct.
d) Both Assertion (A) and Reason (R) are not correct.
Ans:- c)
Assertion (A): Assets are revalued and liabilities are reassessed in case of dissolution of partnership.
Reason (R): A Revaluation Account is prepared on dissolution of partnership and gain or loss on revaluation is distributed between the partners.
Options:
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct reason of Assertion (A)
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct reason of (A)
(c) Only Reason (R) is correct.
(d) Both Assertion (A) and Reason (R) are wrong.
Ans:- (a)
Assertion (A): Balance at Banks is transferred to Realisation Account.
Reason (R): Balance at Bank is not to be realised but instead distributed in its present form.
Options:
a) Assertion (A) and Reason (R) are correct but the reason (R) is not the correct explanation of Assertion (A)
b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
c) Only Assertion (A) is correct.
d) Assertion (A) is not correct but the Reason (R) is correct.
Ans:- d)
Assertion (A): On dissolution, if a partner is appointed to realise the assets and he gets a commission on realisation of assets, he will be liable to bear the realisation expenses also.
Reason (R): In the absence of specific agreement, partner doing the dissolution work and getting commission is not liable to bear the realisation expenses.
Options
(a) Assertion (A) is correct, but Reason (R) is wrong.
(b) Both Assertion (A) and Reason (R) are correct.
(c) Assertion (A) is wrong, but Reason (R) is correct.
(d) Both Assertion (A) and Reason (R) are wrong.
Ans:- (c)
Assertion (A): Dissolution of the firm means the dissolution of the partnership between all the partners of the firm.
Reason (R): Dissolution of the firm means the closure of business and therefore means dissolution of partnership also.
Options:
a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A)
b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
c) Only Assertion (A) is correct.
d) Both Assertion (A) and Reason (R) are not correct
Ans:- b)
Assertion (A): Loan from the wife of a partner is treated just like loan from the partner himself.
Reason (R): It is not transferred to Realisation Account.
Options:
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct reason of Assertion (A)
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct reason of Assertion (A)
(c) Both Assertion (A) and Reason (R) are incorrect
(d) Only Reason (R) is correct
Ans:- (c)
Assertion (A): Dissolution of partnership firm refers to the dissolution of the partnership among all the partners of the firm.
Reason (R): Dissolution of partnership firm results into closure of business and hence dissolution of partnership also.
Options:
(a) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(c) Both Assertion (A) and Reason (R) are false
(d) Assertion (A) is false, but Reason (R) is true
Ans:- (b)
Assertion (A): Any amount paid to discharge an unrecorded liability is credited to the Realisation Account.
Reason (R): Payment made to discharge an unrecorded liability is a net loss to the firm and therefore is debited to Realisation Account.
Options:
a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A)
b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
c) Both Assertion (A) and Reason (R) are not correct.
d) Assertion (A) is not correct but the Reason (R) is correct
Ans:- d)
Assertion (A): On dissolution of a firm, advertisement suspense account appearing on the assets side of the balance sheet will not be transferred to Realisation Account.
Reason (R): Advertisement Suspense Account is a fictitious asset and hence will be transferred to the debit side of partner’s capital accounts.
Options:
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct reason of Assertion (A)
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct reason of Assertion (A).
(c) Only Assertion (A) is correct
(d) Only Reason (R) is correct
Ans:- (a)
Assertion (A): On dissolution, ‘Loan by firm to a Partner’ is not transferred to partner’s Capital Account but is recovered from him.
Reason (R): Such a loan is an asset of the firm and hence this amount is recovered from the partner so that it is utilised to make payment of third party liabilities of the firm.
Options:
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct reason of Assertion (A)
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct reason of Assertion (A).
(c) Only Reason (R) is correct
(d) Both Assertion (A) and Reason (R) are wrong
Ans:- (a)
Assertion (A): Partner’s private property can be used in paying off the firm’s debts.
Reason (R): In case of partnership firm, partner’s liability is unlimited.
Options:
(a) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(c) Both Assertion (A) and Reason (R) are False
(d) Only Assertion (A) is true
Ans:- (b)
Assertion (A): On dissolution, there will be no entry if creditors for ₹ 50,000 are given stock worth ₹ 60,000 in full settlement of their debt.
Reason (R): On dissolution, there will be no entry if Partner’s Loan to the firm amounting to ₹ 50,000 is settled by giving him stock worth ₹ 60,000.
Options
(a) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(c) Both Assertion (A) and Reason (R) are false
(d) Assertion (A) is true but Reason (R) is false
Ans:- (d)
Manav and Daksh were partners sharing profits and losses in the ratio of 5 : 3. Their firm was dissolved on March 31, 2023. On the date of dissolution, Daksh’s Loan to the firm amounted to ₹ 80,000 and was settled at ₹ 75,000.
Assertion (A): Daksh’s Loan will be debited by ₹ 75,000 only.
Reason (R): Daksh’s Loan to be closed only by the amount paid to him.
Options
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is incorrect but Reason (R0 is correct
(d) Both Assertion (A) and Reason (R) are incorrect.
Ans:- (d)
Assertion (A): A revaluation account is prepared at the time of dissolution of a partnership.
Reason (R): A revaluation account is prepared to determine the net gain/loss on realisation of assets and settlement of liabilities.
which one of the following is correct?
Options:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion and Reason (R) are true but Reason is not the correct explanation of Assertion (A)
(c) Both Assertion (A) and Reason (R) are false
(d) Assertion is true but Reason (R) is false
Ans:- (c)
Assertion (A): Partner’s personal assets can be applied to pay firm’s debt.
Reason (R): In a partnership firm, partners have unlimited liability
Options
(a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A)
(b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(c) Only Assertion (A) is correct
(d) Assertion (A) is not correct but the Reason (R) is correct.
Ans:- (b)
Assertion (A): Loan from a relative of a partner is an outside liability.
Reason (R): It is not transferred to the Realisation Account.
Options:
(a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A)
(b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(c) Only Assertion (A) is correct
(d) Assertion (A) is not correct but the Reason (R) is correct.
Ans:- (c)
Assertion (A): Building is a tangible asset it is shown as realised at book value, if its realised value is not given.
Reason (R): Patent is an intangible asset and if its realised value is not given, it is realised at book value.
Options:
(a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A)
(b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(c) Only Assertion (A) is correct
(d) Assertion (A) is not correct but the Reason (R) is correct.
Ans:- (c)
Assertion (A): If an asset is given to pay a liability, it is not recorded in the Realisation Account.
Reason (R): Giving of an asset to settle a liability does not involve payment or receipt.
Options:
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are not correct
(c) Assertion (A) is not correct but Reason (R) is correct
(d) Assertion (A) is correct but the Reason (R) is not correct
Ans:- (a)
