CBSE Questions for Class 12 Commerce Accountancy Dissolution Of Partnership Firm Quiz 4 - MCQExams.com

A firm is compulsorily dissolved if -.

(1) All partners are adjudicated insolvent
(2) The firm has been continuously suffering losses
(3) Partnership has various adventures & one such adventure becomes illegal.
(4) All of the partners except one, are adjudicated insolvent
(5) If the business of the firm becomes illegal because of some subsequent events, such as change in law
  • (4), (1) & (5)
  • (3), (2) & (4)
  • (5), (2), (4) & (1)
  • (1), (3), (4) & (5)
If at the time of admission, partner pays premium, then on dissolution, he is entitled to demand the return of a proportion of the premium if the partnership was for a fixed term and was dissolved before the expiry of that term, unless dissolution was caused by___.
  • Agreement
  • Misconduct of the party seeking return of the premium
  • Death of a partner
  • All of the above
Who is treated as liquidator in Creditors' voluntary winding up?
  • Person appointed by member
  • Person appointed by creditors
  • Person appointed by court
  • Person appointed by directors
X,Y and Z are three partners sharing profit and loss in the ratio of  3:2:The firm took joint life policy of Rs.30,000 for X,Rs.20,000 for Y and Rs.10,000 for Z. What is the share of Z in the Joint Life policy?
  • Rs.30,000
  • Rs.15,000
  • Rs.10,000
  • Rs.20,000
_________ is created to provide funds for payment to the legal heir of the deceased partner.
  • Sinking fund
  • Joint life policy
  • Invest in mutual fund
  • Fixed deposit in banks
Upon dissolution, which is the proper order of application of the firm's assets?
I . Payment of partners loan
II. In paying the debts of the firm to third parties
III. Distribution of surplus to partners in profit sharing ratio
IV. Payment of partners capital

Select the correct answer from the options given below-
  • I, IV, III, II
  • II, I, IV, III
  • II, I, III, IV
  • I, II, III, IV
Dissolution of the partnership is _________ in nature, as it is dissolved by mutual agreement. Conversely, a firm is dissolved either ________________.
  • Voluntary, Voluntarily or Temporarily
  • Temporary, Voluntarily or Compulsorily
  • Voluntary, Voluntarily or Compulsorily
  • Unchanged, Voluntarily or Compulsorily
After the dissolution of the firm, any partner or his representative may restrain any other partner or his representative from carrying of similar business in the firm's name or by using firm's property for own benefit until___.
  • The affairs of the firm are fully wound up
  • Public notice of dissolution is given
  • Dissolution deed is signed by all partners
  • All of the above
In which of the following case Garner v Murray rule is NOT applicable? 
Only one partner is solvent.
All partners are insolvent.
When partnership deed provides a specific method to be followed in case of insolvency of a partner

Select the correct answer from the options given below-
  • 1 only
  • 1 & 2 only
  • 3 only
  • 1, 2 & 3
The amount due to the retiring partner can be made by ________.
  • lump sum payment method
  • installment payment method
  • annuity method
  • both (A) or (B)
Where the continuing partners carry on the business of the firm, the dead partner whose claim is not settles, his executor -
X. is entitled to share of profits since date of cessation as partner.
Y. is not entitled to claim anything other than unsettled amount.
Z. is entitled to $$6\%$$ interest p.a on the unsettled amount.
Select the correct answer from the options given below.
  • Y is correct.
  • Only X is correct.
  • Only Z is correct.
  • Either X or Z at his option.
Ram paid premium for entering into a partnership for a fixed term. The firm is dissolved before expiry of such term due to the difference of opinion between partners. Here__.
  • Ram is entitled to return of the entire premium
  • Ram is not entitled to return of any premium
  • Ram is entitled to return of the entire premium or pro -rate part therof
  • Ram has to pay further premium
A, B, & C were partners sharing profits and losses in the ratio of 3:2:1 A Retired and firm received the joint life policy as 7,500 appearing in the balance sheet at 10,000 JLP is credited and cash debited 7,500 what will be the treatment for the balance in Joint Life Policy?
  • Credited to partner's current account in profit sharing ratio.
  • Debited to revaluation account.
  • Debited to partner's capital account in profit sharing ratio.
  • Either (B) or (C)
0:0:1


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