MCQ OF DISSOLUTION OF A PARTNERSHIP FIRM  accountancy class12

Dissolution of a Partnership Firm

Multiple Choice Questions

Q. 1. In which condition a partnership firm is deemed to be dissolved?

(A) On a partner's admission

(B) On retirement of a partner

(C) On expiry of the period of partnership

(D) On loss in partnership

Q.2. Court can make an order to dissolve the firm when

(A) Some partner has become fully mad

(B) Partnership deed is fully follo

(C) Continued future profits are expected

(D) Firm is running legal business

Q. 3. On dissolution of a firm, realisation account is debited with

(A) All assets to be realised

(B) All outside liabilities of the firm

(C) Cash received on sale of assets

(D) Any asset taken over by one of the partners

Q. 4. On dissolution of a firm, out of the proceeds received from the sale of assets

will be paid first of all

(A) Partner's Capital

(B) Partner's Loan to Firm

(C) Partner's additional capital

(D) Outside Creditors

O. 5. At the time of dissolution of firm, "Loan of partners" (Loans given by

partners to the firm) is paid out of the amount realised on sale of assets:

(A) After making the payment of loans given by third party

(B) After making the payment of balance of Capital Accounts of partners

(C) After making the payment of above (A) and (B)

(D) Before the payment of loans given by third party

6. At the time of dissolution of firm, at which stage the balance of partner's
capital accounts is paid?
(A) After making the payment to third party's loans
(B) Before making the payment of partners in respect of their loans
(C) After
loans
making the payment to third party for their loans as well as partners
(D) None of the above.

Q.7. On firm's dissolution, which one of the following account should be prepared
that the last?
(A) Realisation Account
(C) Cash Account
(B) Partner's Capital Accounts
(D) Partner's Loan Account

Q. 8. In the event of dissolution of a partnership firm, the provision for doubtful
debts is transferred to
(A) Realisation Account
(C) Sundry Debtors Account
(B) Partners Capital Accounts
(D) None of the above

0.9. On dissolution, if a partner undertakes to make payment of a liability of the
is debited)
(A) Profit & Loss Account
(C) Partner's Capital Account
firm
(B) Realisation Account
(D) Cash Account

                                                                                        
Q. 10. Unrecorded liability, when paid on dissolution of a firm is debited to
(A) Partner's Capital A/cs
(C) Liabilities A/c
(B) Realisation A/c
(D) Asset A/c

Q. 11. On dissolution of a partnership firm, profit or loss on realisation is distributed
among the partners
(A) In capital ratio
(C) Equally
(B) In Profit sharing ratio
(D) None of the above

Q. 12. On dissolution of the firm, amount received from sale of unrecorded asset is
credited to:
(A) Partner's Capital Accounts
(C) Realisation Account
(B) Profit and Loss Account
(D) Cash Account

Q. 13. Realisation A/c Is a
(A) Nominal A/c
(C) Personal A/c
(B) Real A/c
(D) Real A/c as well as Personal A/c

0. 14. In the event of dissolution of firm, the partner's personal assets are first used
for payment of the
(A) Firm's liabilities
(C) None of the two
(B) The personal liabilites
(D) Any of the two

Q. 15. A partnership firm is compulsorily dissolved)
(A) When the business of the firm is declared illegal
(B) When a partner of the firm dies
(C) When a partner of the firm becomes insolvent
(D) When a partner transfers his share to some other person without the
consent of other partners

Q. 16.At the time of firm's dissolution, Balance of General Reserve shown in the
Balance Sheet is credited to

(A) Realisation Account
(B) Creditor's Account
(D) Profit & Loss Account
(C) Partner's Capital Account

Q. 17. On dissolution, goodwill account is transferred to)
(A) In the Capital Accounts of Partner
(B) On the credit of Cash Account
(C) On the Debit of Realisation Account
(D) On the Credit of Realisation Account

Q. 18. At the time of dissolution of partnership firm, fictitious assets are transferred
to:
(A) Capital Accounts of Partners

(B) Realisation Account
(C) Cash Account
(D) Partners' Loan Account

Q. 19. At time of dissolution of partnership firm, the balance of profit and loss
account shown in the assets side of Balance sheet of the firm is transferred to:
(A) Realisation Account

(B) CASH Account
(C) Capital Accounts of partners

(D) Loan Accounts of partners

Q. 20. At the time of dissolution of partnership firm, the amount of 'Bills Payable
shown in the liability side of Balance Sheet is transferred to
(A) Capital Accounts of Partners
(C) Cash Account
(B) Cash Account
(D) Loan Account of Partners

                                                                                                                          
Q. 21. On dissolution, the final balance of capital accounts are transferred to
(A) Realisation Account
(C) Profit & Loss Account
(B) Cash Account
(D) Loan Accounts of Partners

Q. 22. Change in the existing agreement between the partners is called
(A) Dissolution of Firm
(C) Dissolution of Business
(B) Dissolution of Partnership
(D) All of the Above

Q. 23. On dissolution, the balance of Profit&Loss Account' a
side of a Balance Sheet is transferred to:
appearing on the assets
(A) On the debit of Realisation Account
(B) On the credit of Realisation Account
(C) On the debit of Partner's Capital Accounts
(D) On the credit of Partner's Capital Accounts

Q24. On dissolution of a firm, a partner paidき700 for firm's realisation ex
Which account will be debited?
(A) Cash Account
(C) Capital Account of the Partner

(D) Profit & Loss A/c
(B) Realisation Account

25. On taking responsibility of payment of realisation expenses by a partner, the
account credited will be :
(A) Realisation Account
(C) Capital Account of the Partner

(D) None of the Above
(B) Cash Account

Q, 26. On dissolution of firm, loss calculate in realisation account is debited/credited
to which account?
(A) Cash Account (Credit)
(B) Partners' Capital Accounts (Debit)
(C) Partners' Capital Accounts (Credit)
(D) Realisation Account (Debit)

Q. 27. Profit or loss of realisation account is transferred to
(A) Profit & Loss Account
(C) Balance Sheet
(B) Capital Accounts of Partners
D) None of the Above

Q.28. Which of the following is transferred to Realisation Account
(A) Balance of Cash Account
(C) Amount realised on sale of assets

(D) Reserves
(B) Balance of Profit & Loss Account

Q 29. Which of the following is not transferred to Realisation Account
(A) Balance of Cash Account
(B) Balance of Reserves
(C) Balance of Profit & Loss Account
(D) All of the Above

Q. 30. On taking responsibility of payment of a liability of 50,000 by a partner, the
account credited will be:
(A) Realisation Account
(B) Cash Account
(D) Liability Account
(C) Capital Account of the Partner

Q .31. Cash balance shown in the Balance Sheet is shown on dissolution of firm in
(A) Realisation Account
(C) Capital Account
(B) Cash Account
(D) None of the Account
32 on firm's dissolution, on realisation of goodwill (which was shown in
Balance Sheet) will be credited to

(a)cash a/c
(B) Realisation A/c
(D) None of the A/c
(C) Profit & Loss A/c

Q. 33. On dissolution of a firm, its Balance Sheet revealed total creditors
Total Capital 48,000; Cash Balance 3,000. Its assets were realized at 12% less. Loss on realisation will be
(B) 11,760
(A) 6,000
(C) 11,400
(D) 3,600

Q. 34. On firm's dissolution, when a partner voluntarily gives his personal asset to
firms' creditor as payment, the account credited will be
(A) Realisation A/c
(C) Cash A/c
(B) Partner's Capital A/c
(D) None of the A/c

Q. 35. On dissolution, when a partner takes over an unrecorded asset,
credited:
(A) Capital Account of the Partner
(C) Asset Account
(B) Cash Account
(D) Realisation Account

Q. 36. On dissolution, when a partner takes over an asset...is debited
(A) Realisation Account
(C) Cash Account
(B) Partner's Capital Account
(D) Asset Account

Q. 37. In case of dissolution, assets are transferred to Realisation Account
(A) At Book Value
(B) At Market Value
(C) Cost or Market Value, whichever is lower
(D) None of the Above

Q. 38. On dissolution, the balance of a partner's capital account appearing on the
assets side of a balance sheet is transferred to:
(A) On the Debit of Realisation Account
(B) On the Credit of Realisation Account
(C) On the Debit of Partner's Capital Account
(D) On the Credit of Cash Account

Q. 39. On dissolution, partner's loan is transferred to
(A) Partner's Capital Account
(C) Partner's Loan Account
(B) Realisation Account
(D) Revaluation Account

Q. 40. Sundry Creditors amounted to 8,000. These were paid at a discount of 5%
Realisation account will be debited by.
(A) 8,000
(C)400
(B) ?7,600
(D) 28,400

Q. 41. There was an Unrecorded asset of 22,000 which was taken over by a partner
at 1,500. Partner's Capital Account will be debited by.
(A) 2,000
(C)500
(B) 1,500

(D) 3,500

Q. 42. On dissolution of a firm, an unrecorded furniture of the value of 5,000 was
4,300. Which Account will be credited and by how
taken up by a partner for
much amount?
(A) Cash Account by 4,300
(B) Realisation Account by 2700
(C) Partner's Capital Account by 5,000
(D) Realisation Account by 4,300

Q. 43. On the basis of following data, final payment to a partner on firm's dissolution
will be made
Debit balance of Capital Account R14,000; Share of his profit on realisation
43,000; Firm's asset taken over by him for 17,000
(A) 1 ,000
(C) 12,000
(B) 29,000
(D) 60,000

Q.44. On payment of expenses of dissolution, account will be debited:
(A) Realisation Account
(C) Profit & Loss Account
B) Cash Account
(D) None of the Above

Q.45. An unrecorded asset was valued at 1,00,000. On firm's dissolution, it was
sold for 52%. Realisation account will be credited with:
(B) 48,000
(A) 52,000
(C) 71,00,000
(D) None of the Above

Q.46. On firm's dissolution, a partner undertook firm's creditors at 17,000. In this
case the account will be credited
(A) Creditors A/c
(C) Realisation A/c
(B) Cash A/c
(D) Partner's Capital A/c

Q.47. On dissolution, losses are first of all met:
(A) Out of Capital
(C) Out of private assets of partners

(D) Out of loan from Bank
(B) Out of Profits

q 48 ...........is prepared at the time of dissolution:
(A) Revaluation Account
(B) Profit& Loss Account
(C) Profit and Loss Appropriation Account
(D) Realisation Account

Q. 49. While transferring assets to realisation account .. is omitted to
be transferred:
(A) Patents

(B) Goodwill
(D) Investments
(C) Cash

Q. 50. If total assets are 2,00,000; total liabilities are 40,000; amount realised on
sale of assets is? 1,75,000 and realisation expenses are 73,000, the profit or loss on realisation will be
(A) Profit
(A) Profit 12,000
(B) Loss 68,000
(D) Loss 25,000
(C) Loss 28,000

Q. 51. On dissolution of a firm, debtors were 17,000. Of these 500 became ha
and the rest realised 60%. Which account will be debited and by how much amount?

(A) Realisation Account by 16,500

(B) Profit & Loss Account by 500
(C) Cash Account by 9,900

(D) Debtors Account by 7,100

Q.52. In the Balance Sheet Total Debtors appear at 50,000 and Provision for
Doubtful Debts appear at 1,500. How much amount will be realised from
Debtors, if bad debts amount to 10,000 and remaining debtors are realized
at a discount of 5%
(A) 38,000
(C) 36,575
(B) 36,500
(D) 39,500

Q. 53. How much amount will be paid to Creditors for 25,000 if 5,000 of the
creditors are not to be paid and the remaining creditors agreed to accept 5%
less amount?
(A) 18,750
(C) 19,750
(B) 19,000
(D) 20,000

Q. 54. P, a partner, is to bear all expenses of realisation for which he is to be paid
2,000. P had to pay realisation expenses of 2,500. How much amount will
be debited to Realisation Account
(A) 500
(C) 74,500
(B) 22,500
(D) 2,000

Q55How much amount will be paid to A, if his opening capital is 2,00,000 and
his share of realisation profit amounts to10,000 and he has taken over assets
valuing 725,000 from the firm?
(A) ,35,000
(C) 2, 15,000
(B) 1,65,000
(D) 1,85,000


Q. 56. Investments valued 2,00,000 were not shown in the books. One of the
creditors took over these investments in full satisfaction of his debt of
2,20,000. How much amount will be deducted from creditor
(A) 20,000
(B) 2,20,000
(D) 2,00,000
(C) 4,20,000

Q. 57. If creditors are 25,000, capital is 1,50,000 and cash balance is 10,000.
what will be the amount of sundry assets?
(A) 1,75,000
(C) 1,65,000
(B) 1,85,000
(D) 1,40,000

Q. 58. If opening capitals of partners are Aて3,00,000, Bて2.00,000 and C i ,00,000
and their drawings during the year are A 50,000, B 740,000 and C ? 30,000
and creditors are 60,000, what will be the amount of assets of the firm?
(A) 5,40,000
(C) 4,80,000
(B) 4,20,000
(D)6,60,000
HOTS

Q 59. If total assets of a firm are 12,00,000 and total liabilities are 2,40,000, what
will be the capitals of P. O and R if they share profits in the ratio of their
capitals and profit sharing ratio is 1:2:3
(A) P 24,80,000; Q3,20,000; Rき1,60,000
(B) P 1,60,000, Q3,20,000, R 4,80,000
(C) P 2,00,000; Q 24,00,000, R 6,00,000
(D) P 6,00,000; Q 4,00,000; R 2,00,000

Q. 60. On dissolution of a firm, a partner's capital account has a credit balance of
42,000. His share of profit in realisation account is 9,000. He has paid
firm's realisation expenses 3,000. He will finally get a payment of:
(A) 39,000
(C) 54,000
(B) 42,000
(D) 48,000

Q. 61. On dissolution of a firm, a partner took over 17,000 investments for
14,000. Which one of the following account will be debited/credited with
how much amount?
(A) Partner's Capital Account Debit with 14,000
(B) Partner's Capital Account Credit with 217,000
(C) Realisation Account Credit with17,000
(D) Realisation Account Credit with 3,000

Q. 62. On dissolution of firm, which item is debited to the realisation account?
(A) Realisation expenses paid by partner
(B) Balance of reserve fund
(C) Amount of unrecorded asset
(D) Creditor's balance shown in the Balance Sheet
HOTS

Q.63. At the time of dissolution of a firm, Creditors are R70,000; Partners' capital is
,20,000; Cash Balance is 10,000. Other assets realised 1,50,000.
Profit/Loss in the realisation account will be
(A) 260,000 (Loss)
(C) 40,000 (Loss)
(B)80,000 (Profit)
(D)30,000 (Loss)
HOTS

Q. 64. On dissolution of a firm, debtors 217,000 were shown in the Balance Sheet.
Out of this 2,000 became bad. One debtor became insolvent. 70% were

recovered from him out of 5,000. Full amount was recovered from the
balance debtors. On account of this item, loss in realisation account will be
(B)1,500
(D)2,000
(A) 5,100
(C) 3,500

HOTS
Q.65. x and Yand Z are partners in a firm in the ratio of 4:3:2. On firm's dissolution
On, firm's total assets are 70,000, creditors are 15,000. Realisation expenses are 2.100. Assets realised 15% more than the book-value. Creditors were paid 2% mnore. For profit/loss on realisation, Y's capital account will be debited/credited with
(A) Credit 78,100
(C) Debit R2,700
(B) Credit 2,700
(D) Debit 2,400
HOTS

Q. 66. On dissolution of a firm, firm's Balance Sheet total is 77,000. On the assets
side of the Balance Sheet items were shown preliminary expenses 2,000;
Profit & Loss Account (Debit) Balance 4,000 and Cash Balance 21,800.
Loss on realisation was 26,300. Total assets (including cash balance) realsed
will be
(A)69,200
(C)64,700
(B) 27 1 .000
(D) 62,900
HOTS

Q 67 on dissolution of a firm, partners' capital accounts balance was 63,000;
creditors balance was 12,000 and profit & loss account debit balance was
6,000. Profit on realisation of assets was 7,800. Total amount realised from
assets was
(A) 81,000
(B) 76,800
(D) None
(C)70,800

Q. 68. On dissolution of a firm, a partner took-over the investments or 15,000 at
19,000. By how much amount the Realisation Account will be credited?
(A) 24,000
(C) Nil
(B) 19,000
(D) 723,000

Q. 69. Anu, Bina and Charan are partners. The firm had given a loan of 20,000 to
Bina. On the event of dissolution, the loan will be settled by:
(A) Transferring it to debit side of Realization Account.
(B) Transferring it to credit side of Realization Account.
(C) Transferring it to debit side of Bina's Capital Account.
(D) Bina paying Anu and Charan privately. (C.B.S.E. Sample Paper, 2015)