Accountancy Test

Question 1
5 / -1

The modes by which a firm may be dissolved are

A
By Notice

B
By Mutual agreement

C
Compulsory Dissolution

D
Any of the options

Question 2
5 / -1

Why is realization account prepared?

A
For Closing the Partnership accounts

B
For Opening the partnership accounts

C
For profit sharing

D
None of the above

Question 3
5 / -1

Rohan, Mohan and Sohan were partners, sharing profits equally. At the time of the dissolution of the partnership firm, Rohan’s loan to the firm will be

A
Debited to Rohan’s Capital Account

B
Debited to Realisation Account

C
Credited to Realisation Account

D
Credited to Bank Account

Question 4
5 / -1

The amount realised from an unrecorded asset is credited to ___________ on the dissolution of a firm

A
Partner's Capital

B
Bank A/c

C
Realisation Account

D
Revaluation account

Question 5
5 / -1

How will the accumulated profit/losses be treated at the time of the dissolution of the firm?

A
Transferred to Cash/Bank account

B
Transferred to Revaluation account

C
Transferred to Partner's Capital Account

D
Transferred to Balance sheet

Question 6
5 / -1

Which one of the following is the correct difference between Realisation and Revaluation Account?
1. Realisation account is prepared at the time of change in profit sharing ratio, while Revaluation account is prepared on admission of partner.
2. Revaluation account may be prepared multiple times, while realisation account is prepared only once in the lifetime of business.
3. Revaluation is prepared for adjustment of Assets and Liabilities, while realisation is prepared for calculating profit or loss on realisation of them.

A
Only 2

B
Both 1 & 2

C
Both 2 & 3

D
Both 1 & 3

Question 7
5 / -1

If at the time of dissolution, nothing is stated regarding the settlement of any outside liability then

A
It is transferred to partner's capital

B
It is not paid

C
It is paid in full

D
None of the above

Question 8
5 / -1

When realization expenses are paid by the firm on behalf of a partner, such expenses are debited to:

A
Realisation Account

B
Partner’s Capital Account

C
Partner’s Loan Account

D
None of the above.

Question 9
5 / -1

On firm’s dissolution, which one of the following account should be prepared at the last?

A
Cash/Bank Account

B
Partner’s Loan Account

C
Partner’s Capital Accounts

D
Realisation Account

Question 10
5 / -1

How is Goodwill treated at the time of dissolution of a partnership firm?

A
Not recorded anywhere

B
Recorded in realisation account like any other asset

C
Distributed among partners in old ratio

D
Partly paid and partly written off

Submit Test

Accountancy Tes...

Question 1

By Notice

By Mutual agreement

Compulsory Dissolution

Any of the options

Question 2

For Closing the Partnership accounts

For Opening the partnership accounts

For profit sharing

None of the above

Question 3

Debited to Rohan’s Capital Account

Debited to Realisation Account

Credited to Realisation Account

Credited to Bank Account

Question 4

Partner's Capital

Bank A/c

Realisation Account

Revaluation account

Question 5

Transferred to Cash/Bank account

Transferred to Revaluation account

Transferred to Partner's Capital Account

Transferred to Balance sheet

Question 6

Only 2

Both 1 & 2

Both 2 & 3

Both 1 & 3

Question 7

It is transferred to partner's capital

It is not paid

It is paid in full

None of the above

Question 8

Realisation Account

Partner’s Capital Account

Partner’s Loan Account

None of the above.

Question 9

Cash/Bank Account

Partner’s Loan Account

Partner’s Capital Accounts

Realisation Account

Question 10

Not recorded anywhere

Recorded in realisation account like any other asset

Distributed among partners in old ratio

Partly paid and partly written off

User

Question Analysis

Results Announcement on: coming Monday

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