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Dissolution Of Partnership Firm Accountancy - Dissolution Of Partnership Firm

CBSE - STD 12 Commerce - Accountancy (CBSE - English Medium). 356 questions in this chapter.

Question types

Dissolution Of Partnership Firm question types

356 questions across 4 question groups — pick any mix to generate a Accountancy paper with step-by-step answer keys.

356
Questions
4
Question groups
5
Question types
Sample Questions

Dissolution Of Partnership Firm questions

One sample from each question group in this chapter. Select any group above to see the full set with answer keys.

Q 1M.C.Q (1 Marks)1 Mark
Rohan, Mohan and Sohan were partners sharing profits equally. At the time of dissolution of the partnership firm, Rohan’s loan to the firm will be:
  • A
    Credited to Rohan’s Capital Account.
  • B
    Debited to Realisation Account.
  • C
    Credited to Realisation Account.
  • ✓
    Credited to Bank Account.

Answer: D.

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Q 2M.C.Q (1 Marks)1 Mark
Business of firm is completely stopped, its assets are realized, liabilities paid off and surplus distributed among partners according to their share in firm's property. This is known as:
  • A
    Dissolution of partnership
  • ✓
    Dissolution of firm
  • C
    Reconstitution of firm
  • D
    Dissolution of firm name

Answer: B.

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Q 3M.C.Q (1 Marks)1 Mark
Cash balance shown in the Balance Sheet is shown on dissolution of firm in :
  • A
    Realisation Account
  • ✓
    Cash Account
  • C
    Capital Account
  • D
    None of the Account

Answer: B.

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Q 4M.C.Q (1 Marks)1 Mark
On Dissolution, Goodwill Account is transferred to:
  • A
    In the capital Accounts of Partners
  • B
    On the credit of Cash Account
  • ✓
    On the debit of Realisaiton Account
  • D
    On the credit of Reasliation Account

Answer: C.

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Q 5M.C.Q (1 Marks)1 Mark
X & Y entered a Joint Venture for export of Indian Handicraft items to overseas customers. X sends goods worth Rs. 2,00 000 to Y for export to USA. Y exported goods worth Rs. 1,75,000 to USA for Rs. 2,10,000 and agreed to take away the remaining goods at cost less 10%. Y's Account will be __________ for goods taken away.
  • ✓
    Debited by Rs.22,500Rs.22,500
  • B
    Credited by Rs.22,500Rs.22,500
  • C
    Credited by Rs.25,000Rs.25,000
  • D
    Debited by Rs.25,000Rs.25,000

Answer: A.

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Q 73 Marks Question3 Marks
If total assets are ₹ 12,00,000, total liabilities are ₹ 3,00,000, assets are realised at 70% and expenses on realisation are ₹ 10,000, what will be the profit or loss on realisation?
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Q 103 Marks Question3 Marks
Pass Journal entries for the following:
  1. Realisation expenses of ₹ 15,000 were to be met by Rahul, a partner, but were paid by the firm.
  2. Ramesh, a partner, was paid remuneration of ₹ 25,000 and he was to meet all expenses.
  3. Anuj, a partner, was paid remuneration of ₹ 20,000 and he was to meet all expenses. Firm paid an expense of ₹ 5,000.
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Q 114 Marks Question4 Marks
Mona and Sona were partners in a firm sharing profits in the ratio of $2 : 3.$ On $31^{st} $ March, $2019$, their Balance Sheet was as under:
The firm was dissolved on $1^{\text {st }}$ April, $2019$ and the assets and liabilities were settled as follows:
i. Half of the creditors accepted $50 \%$ of the stock. Remaining creditors were paid in full.
ii. The remaining stock was realised at $90 \%$ and debtors realised $80 \%$ of their book value.
iii. Sona took over the responsibility to realise the assets and discharge the liabilities at a remuneration of $₹$ 20,000 and was to bear all expenses of realisation. She paid realisation expenses of $₹ 18,000$ out of her personal account.
iv. Land and Building realised $₹ 7,00,000$.

Prepare Realisation Account.
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Q 124 Marks Question4 Marks
Rakesh, Ram and Rohan were partners sharing profits in the ratio of $5 : 3 : 2.$ On $31^{st}$​​​​​​​ March,$ 2018:$
their Balance Sheet was as follows:
The firm was dissolved on the above date on the following terms:
  1. Land and building and stock were sold for ₹ $6,00,000$. Debtors were realised at $10\%$ less than the book value.
  2. Mrs. Rohan’s loan was settled by giving her an unrecorded computer of ₹ $22,000.$
  3. Rakesh paid off one of the creditors ₹ $20,000$ in settlement of $30,000.$
  4. Rohan’s loan was fully settled at ₹ $18,500.$
Prepare Realisation Account.
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Q 134 Marks Question4 Marks
Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tony and Rony after the various assets (other than cash) and external liabilities have been transferred to Realization Account:
  1. An unrecorded asset of ₹ 2,000 and cash ₹ 3,000 was paid for liability of ₹ 6,000 in full settlement.
  2. 100 shares of ₹ 10 each have been taken over by partners at market value of ₹ 20 per share in their profit sharing ratio, which is 3 : 2.
  3. Stock of ₹ 30,000 was taken over by a creditor of ₹ 40,000 at a discount of 30% in full settlement.
  4. Expenses of realisation ₹ 4,000 were to be borne by Rony. Rony used the firm’s cash for paying these expenses.
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Q 144 Marks Question4 Marks
Ankit, Bobby and Kartik were partners in a firm sharing profits in the ratio 4 : 3 : 3. The firm was dissolved on 31-3-2018. Pass the necessary Journal entries for the following transactions after various assets (other than cash and bank) and third party liabilities had been transferred to Realisation Account:
  1. The firm had stock of ₹ 80,000. Ankit took over 50% of the stock at a discount of 20% while the remaining stock was sold off at a profit of 30% on cost.
  2. A liability under a suit for damages included in creditors was settled at ₹ 32,000 as against only ₹ 13,000 provided in the books. Total creditors of the firm were ₹ 50,000.
  3. Bobby’s sister’s loan of ₹ 20,000 was paid off along with interest of ₹ 2,000.
  4. Kartik’s Loan of ₹ 12,000 was settled at ₹ 12,500.
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Q 154 Marks Question4 Marks
Radhika, Bani and Chitra were partners in a firm sharing profits and losses in the ratio of $2: 3: 1$. With effect from $1^{\text {st }}$ April, $2018$ they decided to share future profits and losses in the ratio of $3: 2: 1$. On that date their Balance Sheet showed a debit balance of ₹ $24,000$ in Profit and Loss Account and a balance of ₹ $1,44,000$ in General Reserve. It was also agreed that:
a. The goodwill of the firm be valued at ₹ $1,80,000$.
b. The Land (having book value of ₹ $3,00,000$ ) will be valued at ₹ $4,80,000$.
Pass the necessary journal entries for the above changes.
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Q 166 Marks Question6 Marks
A, B & C were partners in a firm sharing profits in the ratio of 5:3:2. On 31st March, 2005 their Balance Sheet was as under :
Liabilities Rs. Assets Rs.
Creditors
Reserves Rs.
As Capital 30,000
B’s Capital 25,000
C’s Capital 15,000		 7,000
10,000
70,000		 Buildings
Machinery
Stock
Patents
Cash		 20,000
30,000
10,000
6,000
21,000
87,000
C died on 1st Oct. 2005. It was agreed between his executors and the remaining partners that :
  1. Goodwill be valued at 2 years’ purchase of the average profits of the previous five years, which were 2001 : Rs. 15,000; 2002 : Rs. 13,000; 2003 : Rs. 12,000; 2004 : Rs. 15,000 and 2005 : Rs. 20,000.
  2. Patents be valued at Rs. 8,000; Machinery at Rs. 28,000; Buildings at Rs. 30,000.
  3. Profit for the year 2005-06 be taken as having accrued at the same rate as the previous year.
  4. Interest on capital be provided at 10% p.a.
  5. A sum of Rs. 7,750 wa”s paid to his executors immediately.
Prepare C’s Capital Account and his executors account at the time of his death.
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Q 176 Marks Question6 Marks
Pass necessary journal entries on the dissolution of a partnership firm in the following cases:
  1. Expenses of dissolution ₹ 500 were paid by John, a partner.
  2. Joney, a partner, agreed to bear the dissolution expenses for a commission of ₹ 750. Actual dissolution expenses ₹ 650 were paid by Joney.
  3. Bony, a partner, agreed to look after the dissolution work for a remuneration of ₹ 3,700. He also agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 4,200 were paid by Bony from the firm’s cash.
  4. Sony, a partner, was appointed to look after the dissolution work for a remuneration of ₹ 10,000. Sony agreed to bear the dissolution expenses. Sony took away stock worth ₹ 10,000 as his remuneration. Stock had already been transferred to realisation account.
  5. Vikky, a partner, agreed to look after the dissolution work for a remuneration of ₹ 12,000. Vikky also agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 12,500 were paid by another partner, Clive, on behalf of Vikky.
  6. Dissolution expenses were ₹ 5,000.
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Q 186 Marks Question6 Marks
G and H were partners in a firm sharing profits in the ratio of 9 : 7. On 1.4.2015 their firm was dissolved. After transferring assets (other than cash) and outsider’s liabilities to realisation account you are given the following information:
  1. Mohan, a creditor of ₹ 2,80,000 accepted debtors of ₹ 2,00,000 at a discount of 10% and the balance was paid to him by cheque.
  2. Sohan, a second creditor for ₹ 7,00,000 accepted land of the book value of ₹ 10,00,000 at ₹ 15,00,000 and paid the balance to the firm by cheque.
  3. Ram, a third creditor for ₹ 80,000 took over stock of book value of ₹ 40,000 at ₹ 80,000 and investments of ₹ 48,000 in full settlement of his claim.
  4. Loss on dissolution was ₹ 48,000.
Pass necessary journal entries for the above transactions in the books of G and H.
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Q 196 Marks Question6 Marks
Pass necessary journal entries on the dissolution of a partnership firm in the following cases:
  1. Expenses of dissolution were ₹ 9,000.
  2. Expenses of dissolution ₹ 3,400 were paid by a partner, Vishal.
  3. Shiv, a partner, agreed to do the work of dissolution for a commission of ₹ 4,500. He also agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 3,900 were paid from the firm’s bank account.
  4. Naveen, a partner, agreed to look after the dissolution work for which he was allowed a remuneration of ₹ 3,000. Naveen also agreed to bear the dissolution expenses. Actual expenses on dissolution ₹ 2,700 were paid by Naveen.
  5. Vivek, a partner, was appointed to look after the dissolution work for a remuneration of ₹ 7,000. He agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 6,500 were paid by Rishi, another partner, on behalf of Vivek.
  6. Gaurav, a partner, was appointed to look after the work of dissolution for a commission of ₹ 12,500. He agreed to bear the dissolution expenses. Gaurav took over furniture of ₹12,500 as his commission. The furniture had already been transferred to realisation account.
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Q 206 Marks Question6 Marks
Prem and Suresh were partners in a firm sharing profits in the ratio of 7 : 8. On 1.4.2015 their firm was dissolved. After transferring assets (other than cash) and outsider’s liabilities to realisation account, you are given the following information:
  1. Raman, a creditor of ₹ 4,00,000 accepted land valued at ₹ 7,00,000 and paid ₹ 3,00,000 to the firm.
  2. Gopal, a second creditor for ₹ 1,05,000 accepted ₹ 90,000 in cash and investments of ₹ 14,000 in full settlement of his account.
  3. Hari, a third creditor amounting to ₹ 75,000 accepted stock of the book value of ₹ 60,000 for ₹ 45,000 and the balance was paid to him by cheque.
  4. Loss on dissolution was ₹ 45,000.
Pass necessary journal entries for the above transactions in the books of the firm.
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