CBSE Questions for Class 12 Commerce Accountancy Dissolution Of Partnership Firm Quiz 3 - MCQExams.com

Upon dissolution of firms, the surplus left after settlement of debts and liabilities of the firms shall be ____.
  • Credited to the Reserve Account
  • Credited to Government of India A/c
  • Distributed among the partners equally
  • Distributed to partners according to their rights
Upon dissolution, the firm's assets shall be first applied in paying the debts of the firm to third parties, thereafter it shall be applied in payment of partners' loan,  then it shall be applied in payment of partners' capital and if still surplus remains, it should used for___.
  • In paying the debts of the firm to third parties
  • Payment of partners' loan
  • Payment of partners' capital
  • Distribution of surplus to partners in profit sharing ratio
Upon dissolution, the firm's assets shall be first applied in__.
  • In paying the debts of the firm to third parties
  • Payment of partners loan
  • Payment of partners capital
  • Distribution of surplus to partners in profit sharing ratio
In which of the following situations, the firm will NOT be compulsorily dissolved?
  • All partners or any one of the partners is declared insolvent.
  • The business of the firm becomes unlawful.
  • The partnership has various adventures & one such adventure becomes illegal.
  • The decision is taken by all the partners to dissolve the firm.
In settling the accounts of a firm after dissolution, losses, including deficiencies of capital, shall be paid -.
  • Out of profits
  • Out of capital
  • By the partners individually in the proportions in which they were entitled to share profits
  • First out of profits, next out of capital, and lastly, if necessary, by the partners individually in the proportions in which they were entitled to share profits
Upon dissolution, the firm's assets shall be first applied in paying the debts of the firm to third parties, thereafter it shall be applied in payment of partners' loan, the it shall be applied in___.
  • In paying the debts of the firm to third parties
  • Payment of partners loan
  • Payment of partners capital
  • Distribution of surplus to partners in profit sharing ratio
When it is not registered, a partnership firm is ___________.
  • demend to be illegal organizaation & disallowed to carry on business
  • allowed to carry on business subject to payment of penalty
  • allowed to carry on business subject to certain disabilities
  • all of the above
In which of the following cases, the Court may because of the partner, dissolve a firm?
  • Partner willfully and persistently commits breach of partnership agreement as management.
  • Partner conducts himself in such a way that it is not reasonably practicable for the other partners to carry on business in partnership with him.
  • The firm has been continuously suffering losses and in future also the business cannot be carried on except at a loss.
  • All of the above
It is uncommon to find for realization account :
  • Prepared at the time of dissolution of firm.
  • Contains generally all assets and liabilities.
  • Records the sale of various assets and payment of liabilities.
  • None of the above.
Garner Vs Murray requires _________.
  • that all partners should bring in cash equal to their respective shares of the loss on realization
  • that all partners should bring in cash equal to their respective shares of the loss on realization and deficiency of insolvent partner should be borne by solvent partners in their profit sharing ratio
  • that all partners including insolvent partner should bring in cash equal to their respective shares of the loss on realization and deficiency of insolvent partner should be borne by solvent partners in their last agreed capital ratio
  • that the solvent partners capital loss should be borne in the ratio of their capitals standing in the balance sheet on the date of dissolution of the firm
A partner gave a loan of Rs.20,000 to the firm. At the time of dissolution of the firm the net losses of the firm were 30,How much money will the partner get on dissolution?
  • Nil
  • 20,000
  • 20,000 + 6% interest
  • None of the above
If a partner cannot clear his debts on dissolution, the other partners must clear these debts in the following manner:
  • Debts are shared equally
  • Debts should not be cleared by other partners
  • Partnership profit/loss sharing ratio
  • In the ratio of their last agreed capital balance
When balance sheet prepared after the new partnership, assets and liabilities are recorded at :
  • Original value
  • Revalued figure
  • At current cost
  • As realizable value
At the time of dissolution of the firm, loan from partners relative is _________ .
  • Transferred to Realisation Account
  • Not transferred to Realisation Account
  • Transferred to the Partner's Capital Account
  • None of these above
Claim of the retiring partner is payable in the following form.
  • Fully in cash.
  • Fully transferred to loan account to be paid later with some interest on it.
  • Partly in cash and partly as loan repayable later with agreed interest.
  • Any of the above method.
A, B & C takes a joint life policy, after 5 years B retire from the firm. Old profit sharing ratio is 2:2:After retirement A and C decided to share profits equally. They had taken a joint life policy of 2,50,000 with the surrender value 50,000 What will be the treatment in the partner's capital account on receiving the JLP amount if joint life policy is maintained at the surrender value along with the reserve?
  • 50,000 credited to all the partners in old ratio.
  • 2,50,000 credited to all the partners in old ratio
  • 2,00,000 credited to all the partners in old ratio.
  • Distribute JLP Reserve A/c in old profit sharing ratio.
Dissolution of partnership means :
  • Dissolution of firm
  • Business of the firm is continued
  • Partnership amongst all the partners comes to an end
  • None of the above
X & Y entered a Joint Venture for export of Indian Handicraft items to overseas customers. X sends goods worth Rs. 2,00 000 to Y for export to USA. Y exported goods worth Rs. 1,75,000 to USA for Rs. 2,10,000 and agreed to take away the remaining goods at cost less 10%. Y's Account will be __________ for goods taken away.
  • debited by $$Rs.22,500$$
  • credited by $$Rs.22,500$$
  • credited by $$Rs.25,000$$
  • debited by $$Rs.25,000$$
All external liability accounts including provisions, if any, are closed by transferring them to the credit of _________ account.
  • Bank
  • Realisation
  • Partner's Capital
  • Assets (Individually)
When two firms amalgamate, general reserve is transferred to:
  • New firm's account
  • Revaluation account
  • Partner's account
  • Equal Ratio
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