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Test: Dissolution Of Partnership - 1 - Commerce MCQ


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10 Questions MCQ Test Accountancy Class 12 - Test: Dissolution Of Partnership - 1

Test: Dissolution Of Partnership - 1 for Commerce 2024 is part of Accountancy Class 12 preparation. The Test: Dissolution Of Partnership - 1 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Dissolution Of Partnership - 1 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Dissolution Of Partnership - 1 below.
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Test: Dissolution Of Partnership - 1 - Question 1

This a MCQ (Multiple Choice Question) based practice test of Chapter 5 - Dissolution of Partnership of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations

Q  According to Indian Partnership Act 1932 Dissolution of firm means:

Detailed Solution for Test: Dissolution Of Partnership - 1 - Question 1

Section 39 of the Indian Partnership Act, 1932 defines dissolution of partnership firm. It defines the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

Test: Dissolution Of Partnership - 1 - Question 2

Compulsory dissolution takes place when:

Detailed Solution for Test: Dissolution Of Partnership - 1 - Question 2

When all partners of the firm become insolvent, in such a case it is compulsory to dissolve the firm. It means, this is the end of the partnership firm and end of the partnership among the partners.

Test: Dissolution Of Partnership - 1 - Question 3

Dissolution by court will take place only when ____________

Detailed Solution for Test: Dissolution Of Partnership - 1 - Question 3

Dissolution by Court: At the suit of a partner, the court may order a partnership firm to be dissolved when a partner becomes insane.

Test: Dissolution Of Partnership - 1 - Question 4

Compulsory dissolution will take place when _______

Detailed Solution for Test: Dissolution Of Partnership - 1 - Question 4

Compulsory dissolution will take place when some event has taken place which makes it unlawful for the partnersto carry on the business of the firm in partnership, e.g., when a partner who is a citizen of a country becomes an alien enemy because of thedeclaration of war with his country and India.

Test: Dissolution Of Partnership - 1 - Question 5

When the realisation expenses are to be borne by a partner, it is credited to 

Test: Dissolution Of Partnership - 1 - Question 6

Which of the following account is not prepared at the time of dissolution?

Detailed Solution for Test: Dissolution Of Partnership - 1 - Question 6

Revaluation Account is not prepared at the time of dissolution of partnership firm. The main reason is that revaluation account is prepared at the time of change in existing partnership and not at the time of dissolution of partnership firm.

Test: Dissolution Of Partnership - 1 - Question 7

In which circumstances partners’ can dissolve the firm without interference of the court?

Detailed Solution for Test: Dissolution Of Partnership - 1 - Question 7

Partners may dissolved firm with mutual agreement without interference of the court. A court can dissolve a partnership firm in the following circumstances:
•When a partner has become of unsound mind
•When a partner is found guilty of breath of contract frequently 
•When business of the firm cannot be carried on except at a loss

Test: Dissolution Of Partnership - 1 - Question 8

Choose the current order of priority in settlement of liabilities and capital upon dissolution from items given below:
(a) Expense incurred on realization of assets such as commission, cartage, brokerage etc.
(b) All outside creditors
(c) Balances in Capital Accounts of partners
(d) Partner’s Loan accounts
Correct sequence is

Detailed Solution for Test: Dissolution Of Partnership - 1 - Question 8

The correct order of the payment should be:
(a) Expense incurred on realization of assets such as commission, cartage, brokerage etc.
(b) All outside creditors
(c) Partner’s Loan accounts 
(d) Balances in Capital Accounts of partners

Test: Dissolution Of Partnership - 1 - Question 9

At the time of dissolution a partner cannot take over _______

Detailed Solution for Test: Dissolution Of Partnership - 1 - Question 9

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.

Test: Dissolution Of Partnership - 1 - Question 10

Name the Account which is prepared for finding the profit or loss on getting amount from selling of all assets and paying amount of liabilities.

Detailed Solution for Test: Dissolution Of Partnership - 1 - Question 10

The object of preparing Realisation account is to close the books of accounts of the dissolved firm and to determine profit or loss on the Realisation of assets and payment of liabilities. 

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