Table of Contents
Dissolution of partnership firm MCQs
Dissolution of partnership firm MCQs with Solved answer 12 cbse (Question 1 to5)
1.In which condition a partnership firm is deemed to be dissolved?
(a) On admission of a Partner’s
(b) on retirement of a partner
(c) on deatht of a partner
(d) On expiry of the period of partnership
2.On dissolution of partnership firm, Partner’s loan is transferred to….
(a) Realisation Account
(b) Partner’s Capital Account
(c) Partner’s Current Account
(d) Bank Account
(e) Partner’s Loan Account
3.A partnersjhip firm is compulsory dissolved…
(a) When a partner transfer his share to some other person with the
consent of the partner
(b) When the business of the firm is declared illegal
(c) Partner’s Current Account
(d) When a partner of the firm dies
(e) When a partner of the firm become Insolvent
4.At the time of dissolution of Partnership firm, ficitious, assets are transferred
to…
(a) Realisation Account
(b) Partner’s Capital Account
(c) Partner’s Current Account
(d) Bank Account
5.At the time of dissolution of Partnership firm, Accumulated profit and Reserve are transferred to…
(a) Realisation Account
(b) Partner’s Capital Account
(c) Partner’s Current Account
(d) Bank Account
Also read : REVALUATION ACCOUNT/ PROFIT & LOSS ADJUSTMENT ACCOUNT
Answer – Question Number 1 To 5
1.Answer- (d) On expiry of the period of partnership
2.Answer- (e) Partner’s Loan Account
3.Answer- (b) When the business of the firm is declared illegal
4.Answer- (b) Partner’s Capital Account
5.Answer- (b) Partner’s Capital Account
Dissolution of partnership firm MCQs with Solved answer 12 cbse (Question 6 to10)
6.At the time of dissolution of Partnership firm ,Unrecorded liability paid by the firm shown in …
(a) Debit side of Realisation Account
(b) Credit side of Realisation Account
(c) Debit side of Partner’s Current Account
(d) None of the these
7.At the time of dissolution of Partnership firm ,Unrecorded Assets Taken over by the partner are shown in …
(a) Debit side of Realisation Account
(b) Credit side of Realisation Account
(c) Debit side of Partner’s Current Account
(d) None of the these
8.At the time of dissolution of Partnership firm ,If Goodwill appear in balance sheet is transferred to
(a) Debit side of Realisation Account
(b) Credit side of Realisation Account
(c) Debit side of Partner’s Current Account
(d) None of the these
9.A firm is dissolved compulsorily in the cases…
(a) When all the partners or all excepting one partner becomes insolvent or of unsound mind
(b) When the business becomes unlawful
(c) When all the partners excepting one decide to retire from the firm
(d) When all the partners or all excepting one partner die
(e) All of these
10. What is journal entry is passed if ,Assets taken over by the partner….
(a) Partner’s Capital A/c Dr
To Realisation A/c
(Assets taken over by the Partner)
(b) Bank A/c Dr
To Realisation A/c
(Assets taken over by the Partner)
(c) Realisation A/c Dr
To Partner’s Capital A/c
(Assets taken over by the Partner)
(d) None of these
Answer – Question Number 6 To 10
6.Answer- (a) Debit side of Realisation Account
7.Answer- (b) Credit side of Realisation Account
8.Answer- (a) Debit side of Realisation Account
9.Answer- (e) All of these
10.Answer- (a)
Alsoread : REALISATION ACCOUNT (Meaning)
Dissolution of partnership firm MCQs with Solved answer 12 cbse (Question 11 to15)
11. What is journal entry is passed if ,liability taken over by the partner….
(a) Partner’s Capital A/c Dr
To Realisation A/c
(liability taken over by the Partner)
(b) Bank A/c Dr
To Realisation A/c
(liability taken over by the Partner)
(c) Realisation A/c Dr
To Partner’s Capital A/c
(liability taken over by the Partner)
(d) None of these
12. What is the object of realisation account?
(a) Close the books of accounts
(b) To determine the profit or loss on realisation of assets and payment of liabilities.
(c) To determine the profit or loss on revaluation of assets and reassessment of liabilities.
(d) a and b
13. How will the firm record the payment of realisation expenses which were to be borne by a partner, but paid by the firm on his behalf?
(a) Realisation A/c Dr
To Partner’s Capital A/c
(Realisation expenses paid on behalf of the partner)
(b) Partner’s Capital A/c Dr
To Bank A/c
(Realisation expenses paid on behalf of the partner)
(c)Realisation A/c Dr
To Bank A/c
(Realisation expenses paid on behalf of the partner)
(d) None of these
14. What will be the treatment of loan given to a partner by the firm at the time of its dissolution?
(a) Partner’s Loan A/c will be debited to his Capital A/c.
(b) Partner’s Loan A/c will be Credited to his Capital A/c.
(c) Partner’s Loan A/c will be Credited to Realisation A/c.
(d) Partner’s Loan A/c will be debited to Realisation A/c.
15. Name the asset that is not transferred to the debit side of Realisation Account, but brings certain amount of cash against its disposal at the time of dissolution of the firm.
(a) Building
(b) Machinery
(c) Goodwill
(d) Unrecorded asset
Answer – Question Number 11 To 15
11.Answer- (c)
12.Answer- (d) a and b
13.Answer- (b)
14.Answer- (a) Partner’s Loan A/c will be debited to his Capital A/c.
15.Answer- (d) Unrecorded asset
Also read : Retirement of a partner MCQs with solved answer 12 cbse
Dissolution of partnership firm MCQs Question 16 to 20
16. What is journal entry is passed if ,unrecorded assets book value Rs.50,000 taken over by a partner Rs. 45,000 ….
(a) Partner’s Capital A/c Dr 45,000
To Realisation A/c 45,000
(Unrecorded assets taken over by the Partner)
(b) Partner’s Capital A/c Dr 45,000
Realisation A/c Dr 5,000
To Realisation A/c 50,000
(Unrecorded assets taken over by the Partner)
(c) Partner’s Capital A/c Dr 45,000
Loss A/c Dr 5,000
To Realisation A/c 50,000
(Unrecorded assets taken over by the Partner)
(d) None of these
17. What is the object of realisation account?
(a) Close the books of accounts
(b) To determine the profit or loss on realisation of assets and payment of liabilities.
(c) To determine the profit or loss on revaluation of assets and reassessment of liabilities.
(d) a and b
18. How will the firm record the payment of realisation expenses which were to be borne by firm, but paid by the partner on the behalf of firm?
(a) Realisation A/c Dr
To Partner’s Capital A/c
(Realisation expenses paid by partner on the behalf of the firm)
(b) Realisation A/c Dr
To Bank A/c
(Realisation expenses paid by partner on the behalf of the firm)
(c) Partner’s Capital A/c Dr
To Bank A/c
(Realisation expenses paid by partner on the behalf of the firm)
(d) None of these
19. At the time of dissolution of partnership firm,the balance of cash and bank accounts are transferred to ….
(a) Partner’s Loan A/c
(b) Partner’s Capital A/c
(c) Realisation A/c
(d) Cash/Bank A/c
20. After the preparation of realisation account, Gain or loss of realisation is
transferred to ………..
(a) Partner’s Loan A/c
(b) Partner’s Capital A/c
(c) Realisation A/c
(d) Cash/Bank A/c
Answer – Question Number 16 To 20
16.Answer- (a)
17.Answer- (d) a and b
18.Answer- (a)
19.Answer- (d) Cash/Bank A/c
20.Answer- (b) Partner’s Capital A/c
Dissolution of partnership firm MCQs Question 21 to 25
21. At the time of dissolution of partnership firm , Book value of stock 15,000. Y took over part of stock at 4,000 (being 20% less than the book value). Balance stock realised 80%. what will be the anount realised from stock?
(a) 8,000
(b) 8,800
(c) 11,600
(d) 12,000
22. Basu, Vishu and Mishu are in partnership sharing in 3 : 3 : 4. They decided to dissolve the partnership firm. At the date of dissolution their creditors amounted to 26,000 . Their capitals stood at 12,000; 10,000 and 8,000 respectively. Vishnu had lent to the firm, in addition to capital 4,000. The assets realised 40,500. What will be the amount of the book value of assets-
(a) 56,000
(b) 60,000
(c) 52,000
(d) 1,00,500
23.Basu, Vishu and Mishu are in partnership sharing in 3 : 3 : 4. They decided to dissolve the partnership firm. At the date of dissolution their creditors amounted to 26,000 . Their capitals stood at 12,000; 10,000 and 8,000 respectively. Vishnu had lent to the firm, in addition to capital 4,000. The assets realised 40,500. What will be the amount of profit/loss on realisation of assets and payment of liability?
(a) Profit on realisation 19,500
(b) Loss on realisation 19,500
(c) Profit on realisation 33,500
(d) Loss on realisation 15,500
24. At the time of dissolution of partnership firm,Fictitious assets( debit balance of profit and loss, Deferred revenue expenditure) are transferred to ….
(a) Partner’s Loan A/c
(b) (Debited) Partner’s Capital A/c
(c) (Credited) Partner’s Capital A/c
(d) Cash/Bank A/c
25. At the time preparation of realisation account, Assets and liability transferred to realisation account , related provision and reserve /fund is transferred to ………..
(a) Partner’s Loan A/c
(b) Partner’s Capital A/c
(c) Realisation A/c
(d) Cash/Bank A/c
Answer – Question Number 11 To 15
21.Answer- (a) 8,000
22.Answer- (b) 60,000
23.Answer- (b) Loss on realisation 19,500
24.Answer- (b) (Debited) Partner’s Capital A/c
25.Answer- (c) Realisation A/c