Dissolution of Partnership Test

Result

Dissolution of Partnership Test - 20

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

At the time of dissolution a partner cannot take over _______

A
Asset

B
Capital of another partner

C
Liability

D
Unrecorded Assets or liabilities

Solution

At the time of dissolution, a partner may take asset, liability or unrecorded assets/liability at the agreed price but cannot take capital of any other partner.
Question 2
1 / -0

Unrecorded liability will be shown in:

A
Debit side of cash A/c

B
Credit side of Realization A/c

C
Debit side of Realization A/c

D
Debit side of partners’ capital A/c

Solution

Any unrecorded liability (which is not given in the balance sheet or which was not recorded earlier) will be shown on the debit side of realization account. It will be paid by the firm at the time of dissolution or might be paid by a partner.
Question 3
1 / -0

Money realised from the sale of unrecorded assets is debited to the _________

A
Revaluation Account

B
Cash Account

C
Balance Sheet

D
Partners capital account

Solution

Money realized from the sale of an unrecorded asset at the time of dissolution of partnership firm, should be shown in the credit side of realization account and debit side of cash account.
Question 4
1 / -0

If Creditors are given ₹20,000 in the balance sheet. But nothing is mentioned under additional information about the payment of the same. How much amount will be paid to the creditors?

A
Payment after 10% Discount

B
Full Amount ₹20,000

C
No Payment to Creditors

D
Half Amount Rs.10,000

Solution

All liabilities will be paid at the time of dissolution of a partnership firm. Whether some information is given or not about the payment of the same. In this case nothing is mentioned about the payment of creditors but it is mandatory to pay the full amount ₹20,000 to the creditors.
Question 5
1 / -0

Unrecorded asset when realised (in cash) will be _________

A
Credited to partners capital account

B
Credited to Realization Account

C
Debited to Partners capital account

D
Debited to Realization Account

Solution

Unrecorded asset (if any) given in the additional information, which is realized (sold) at the time of dissolution, should be shown in the credit side of Realization Account because it is income and according to nominal account rule all incomes are credited.
Question 6
1 / -0

Debtors given in the balance sheet ₹17,000. In additional information bad debts of ₹2,000 given and it is also given that debtors have paid their money in full and final settlement after 10% discount. How much amount is received from debtors?

A
15,000

B
15,300

C
17,000

D
13,500

Solution

Amount received from debtors:

Total amount due ₹17,000

Bad debts ₹2,000

Final amount received = 17,000 – 2,000 = 15,000 – 10% = 13,500
Question 7
1 / -0

At the time of dissolution, there was an unrecorded asset i.e. Laptop, market price of which was ₹24,000. This laptop was taken by a partner (Mohan) at 50% of the market price. Give journal entry for the same.

A

Mohan’s Capital A/c Dr. 12000
To Bank A/c 12000

B

Mohan’s Capital A/c Dr. 12000
To Realization Account 12,000

C

Realization A/c Dr. 12,000
To Mohan’s Capital A/c 12000

D

Bank A/c Dr. 10000
To Office Equipment A/c 10000

Solution

Market price Rs.24,000 and taken by Mohan @ 50% i.e. 12,000 Do not record market price of the asset in any account.since asset is taken over by partner, partner's capital account is debited and realization account is credited.
Question 8
1 / -0

What is the accounting treatment of Investment Fluctuation Fund when it is given in the Balance sheet

A
Debiting Investment Fluctuation Fund account and crediting Realization account

B
Crediting Investment Fluctuation Fund A/c and debiting Partners Capital A/cs

C
Debiting Realization account and crediting Investment Fluctuation Fund account

D
Debiting Bank account and crediting Realization account

Solution

At the time of dissolution of partnership firm, investment fluctuation fund should be credited (transferred) to the realization account and Investment should be transferred to the debit side of realization account.
Question 9
1 / -0

At the time of dissolution, partner’s loan account is not transferred to _____ account but is retained as a separate account.

A
Profit and Loss account

B
Realization account

C
Partner’s Capital account

D
Revaluation Account

Solution

At the time of dissolution, loan of partner is not transferred to the realization account. For this a separate account is prepared i.e. Partner’s Loan A/c and final payment is made to the partner.
Question 10
1 / -0

In what circumstances a partnership firm can be dissolve?

A
When business of the firm become unlawful

B
When Capital account of a partner shows negative balance

C
Both When all partners become insolvent and When business of the firm become unlawful

D
When all partners become insolvent

Solution

A firm is dissolved compulsorily in the following cases:

(a) when all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract;

(b) When the business of the firm becomes illegal.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Dissolution of Partnership Test - 20

Result

Dissolution of Partnership Test - 20

Score

-

Rank

-

SHARING IS CARING

Question 1

Asset

Capital of another partner

Liability

Unrecorded Assets or liabilities

Solution

Question 2

Debit side of cash A/c

Credit side of Realization A/c

Debit side of Realization A/c

Debit side of partners’ capital A/c

Solution

Question 3

Revaluation Account

Cash Account

Balance Sheet

Partners capital account

Solution

Question 4

Payment after 10% Discount

Full Amount ₹20,000

No Payment to Creditors

Half Amount Rs.10,000

Solution

Question 5

Credited to partners capital account

Credited to Realization Account

Debited to Partners capital account

Debited to Realization Account

Solution

Question 6

15,000

15,300

17,000

13,500

Solution

Question 7

Mohan’s Capital A/c Dr. 12000 To Bank A/c 12000

Mohan’s Capital A/c Dr. 12000 To Realization Account 12,000

Realization A/c Dr. 12,000 To Mohan’s Capital A/c 12000

Bank A/c Dr. 10000 To Office Equipment A/c 10000

Solution

Question 8

Debiting Investment Fluctuation Fund account and crediting Realization account

Crediting Investment Fluctuation Fund A/c and debiting Partners Capital A/cs

Debiting Realization account and crediting Investment Fluctuation Fund account

Debiting Bank account and crediting Realization account

Solution

Question 9

Profit and Loss account

Realization account

Partner’s Capital account

Revaluation Account

Solution

Question 10

When business of the firm become unlawful

When Capital account of a partner shows negative balance

Both When all partners become insolvent and When business of the firm become unlawful

When all partners become insolvent

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.

Mohan’s Capital A/c Dr. 12000
To Bank A/c 12000

Mohan’s Capital A/c Dr. 12000
To Realization Account 12,000

Realization A/c Dr. 12,000
To Mohan’s Capital A/c 12000

Bank A/c Dr. 10000
To Office Equipment A/c 10000