200 Important MCQs of Dissolution of a Partnership Firm Accountancy class 12
Looking for important MCQs of Dissolution of a partnership firm chapter with answers and explanations of Accountancy class 12 CBSE, ISC, and other state Boards.
Multiple Choice Questions of Dissolution of a Partnership Firm chapter with answers of Class 12 Accountancy
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Which of the following is not the mode of dissolution of the firm?
a) By Mutual Agreement
b) On happening of an event
c) Dissolution by court
d) Retirement of a partner
Ans – d)
At the time of dissolution of firm, Loan given by partner to the firm is paid out of the amount realised on sale of
assets
a) after payment of outside liabilities but before repayment of capital.
b) after payment of capital of partners
c) after payment of outside liabilities or capital
d) before payment of outside liabilities
Ans – a)
At the time of dissolution of firm, at what stage the balances of partner’s Capital Accounts are paid?
a) After payment of OUtsider’s liabilities
b) Before payment of loan by partner
c) After payment of outsiders liabilities and Partners loan
d) Before payment of outside liabilities
Ans – c)
On dissolution, if a pertner pays firm’s liability which of the following account is debited?
a) Profit and Loss Account
b) Realisation Account
c) Partner’s Capital Account
d) Cash Account
Ans – b)
Amount received from sale of unrecorded asset at the time of dissolution of the firm is credited to
a) Partner’s Capital Account
b) Profit and Loss Account
c) Realisation Account
d) Cash Account
Ans – c)
On Dissolution, Goodwill Account is transferred to
a) In the capital Accounts of Partners
b) On the credit of Cash Account
c) On the debit of Realisaiton Account
d) On the credit of Reasliation Account
Ans – c)
At the time of dissolution of partnership firm, Deferred Revenue Expenditure (Advertisement) Expenditure) is transferred to
a) Capital Account of Partners
b) Realisation Account
c) Cash Account
d) Loan by Partner Account
Ans – a)
Realisation Expenses, ₹15,000 were paid by the firm on behalf of a partner. The Journal Entry passed will be:
a) Realisation A/c Dr. 15,000
To Cash/Bank A/c 15,000
b) Realiastion A/c Dr. 15,000
To Concerned Partner’s Capital A/c 15,000
c) Concerned Partner’s Capital A/c Dr. 15,000
To Cash/Bank A/c 15,000
d) Cash/Bank A/c Dr. 15,000
To Realisation A/c 15,000
Ans – c)
Rohan, Mohan and Sohan were partners sharing profits equally. At the time of dissolution of the partnership firm,
Rohan’s loan to the firm will be
a) Credited to Rohan’s Capital Account
b) Debited to Realisation Account
c) Credited to Realisation Account
d) Credited to Bank Account
Ans – d)
Which of the following is transferred to Realisation Account?
a) Balance of Cash Account
b) Balance of Reserves
c) Balance of Profit and Loss Account
d) Patents Account
Ans – d)
On firm’s Dissolution, Patents realised at ₹40,000, State which account will be credited.
a) Cash A/c
b) Realisation A/c
c) Profit and Loss A/c
d) Patenets A/c
Ans – b)
On the basis of the following data, how much final payment will be made to a partner on firm’s dissolution?
Credit balance of Capital Account of the partner was ₹50,000. Share of loss on realisation amounted to ₹10,000.
Firm’s liability taken over by him was for ₹8,000.
a) ₹32,000
b) ₹48,000
c) ₹40,000
d) ₹52,000
Ans – b)
On dissolution of a firm, an unrecorded furniture of ₹5,000 was taken by a partner for ₹43,00 against payment.
Which account will be credited and by how much amount?
a) Cash Account by ₹43,00
b) Realisation Account by ₹700
c) Partner’s Capital Account by ₹5,000
d) Realisation Account by ₹4,300
Ans – d)
On the basis of following data, what final payment to a partner on firm’s dissolution will be made: Debit balance of
capital Account ₹14,00. Share of his profit on realisation ₹43,000; Firm’s asset taken by him for ₹17,000.
a) ₹31,000
b) ₹29,000
c) ₹12,000
d) ₹60,000
Ans – c)
At the time of dissolution of a firm, Debtors were ₹17,000 out of which ₹500 became bad and the rest realised
60%. Which account will be debited and by how much amount?
a) Realiation Account by ₹16,500
b) Profit and Loss Account by ₹500
c) Cash Account by ₹9,000
d) Debtors Account by ₹7,100
Ans – c)
In the Balance sheet, Debtors exist at ₹50,000 and Provision for Doubtful Debts at ₹1,500. How much amount will
be realised from Debtors, if bad debts are ₹10,000 and remaining debtors are realised at a discount of 5%.
a) ₹38,000
b) ₹36,500
c) ₹36,575
d) ₹39,500
Ans – a)
At the time of firm’s dissolution, if realised amount of an assets is not given, the realised value should be taken as
a) Book Value
b) Market Value
c) Nil
d) None of these
Ans – c)
Investments of ₹2,00,000 were not shown in the boooks. One of the creditors tool these investments in settlement
of his debt of ₹2,20,000. How much amount will be payable to that creditor?
a) ₹20,000
b) ₹2,20,000
c) ₹4,20,000
d) Nil
Ans – d)
Anu, Bina and Charan are partners. The firm had given a loan of ₹20,000 to Bina. They decided to dissolve the firm.
In the event of dissolution, the loan will be settled by
a) transferring it to debit side of Realisation Account
b) transferring it to credit side of Realisation Account
c) transferring it to debit side of Bina’s capital Account
d) Bina paying Anu and Charan privately
Ans – c)
Rohit, a partner is to carry out dissolution and he gets ₹50,000 as remuneration. Realisation Expenses were
₹25,000. Realisatoin Account will be debited with
a) ₹50,000
b) ₹75,000
c) ₹25,000
d) ₹1,00,000
Ans – b)
The firm pay realisation expenses of ₹10,000 on behalf of Nihar, a partner with whom it was agreed at ₹25,000.
Realisation expenses came to ₹35,000. Realisaiton Account will be debited by
a) ₹10,000
b) ₹35,000
c) ₹25,000
d) ₹70,000
Ans – c)
A firm is dissolved, Pawan, a partner is to carry out dissolution. ₹50,000 is fixed as his remuneration. Realisation
expenses were ₹25,000, which were paid by Pawan. Pawan’s Caital Account will be credited by
a) ₹50,000
b) ₹75,000
c) ₹25,000
d) ₹1,00,000
Ans – b)
A firm is dissolved, Param, a partner is to carry out dissolution for which he will get ₹5,000, including expenses.
Realisation Expneses were ₹2,500. Realisatiion Account will be debited by
a) ₹5,000
b) ₹2,500
c) ₹7,500
d) None of these
Ans – a)
At the time of dissolution, total assets are of ₹12,00,000 and external liabilities are of ₹4,80,000. If assets
realised 120% and realisation expenses paid were ₹16,000. The gain or loss on realisation will be
a) Gain ₹2,40,000
b) Loss ₹2,40,000
c) Loss ₹2,24,000
d) Gain ₹2,24,000
Ans – d)
On Dissolution of a partnerhsip firm, out of total debtors of ₹2,50,000, ₹10,000 become bad and the rest realised
70%. In the given case, __ will be debited by __ .
a) Realisation A/c, ₹1,75,000
b) Realisation A/c, 1,68,000
c) Bank A/c, ₹1,82,000
d) Bank A/c ₹1,68,000
Ans – d)
