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Test: Dissolution Of Partnership - 2 - Commerce MCQ


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20 Questions MCQ Test Accountancy Class 12 - Test: Dissolution Of Partnership - 2

Test: Dissolution Of Partnership - 2 for Commerce 2024 is part of Accountancy Class 12 preparation. The Test: Dissolution Of Partnership - 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Dissolution Of Partnership - 2 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Dissolution Of Partnership - 2 below.
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Test: Dissolution Of Partnership - 2 - Question 1

 A partnership deed usually contain the particulars relating to

Test: Dissolution Of Partnership - 2 - Question 2

Asset taken over by partner will be shown in:

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

Any asset taken by a partner will be shown in the credit side of realization account and in partner’s capital account.

Test: Dissolution Of Partnership - 2 - Question 3

Unrecorded liability will be shown in:

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 3

Unrecorded liabilities are those liabilities that are not shown in the Balance Sheet but they still exist in the business. Although these liabilities are not shown in the books, they still need to the discharged off at the time of dissolution and hence are debited to the Realisation account. 

Test: Dissolution Of Partnership - 2 - Question 4

When Asset is taken over by a creditor:

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 4

Any asset taken over by the creditor at the time of dissolution of partnership firm, will not be shown separately or no separate entry will be recorded for the same.

Test: Dissolution Of Partnership - 2 - Question 5

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

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 5

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.

Test: Dissolution Of Partnership - 2 - Question 6

All the assets of the firm are _____ and all outsiders’ liabilities and partners’ loan and partners capitals are ___ at the time of dissolution of firm.

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 6

At the time of dissolution of a partnership firm, all assets available in the business will be realized (sold) and all liabilities will be paid off.

Test: Dissolution Of Partnership - 2 - Question 7

Which of the following Reserve or fund is not transferred to the Realisation Account?

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 7

Contingency Reserves is a free reserve which is not transferred to the Realisation account at the time of dissolution of a partnership firm. Other reserves or funds (given in the above question) will be transferred to the Realisation account.

Test: Dissolution Of Partnership - 2 - Question 8

When Realised value of an asset is not given, It should be taken at ______

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 8

If realized value of any asset is not given in the question, in such a case, realized value should be assumed as nil or Zero realized value.

Test: Dissolution Of Partnership - 2 - Question 9

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?

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 9

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.

Test: Dissolution Of Partnership - 2 - Question 10

If creditors given in the balance sheet ?30,000. Stock costing ?10,000 taken over by creditors at market price of ?8,000 at the time of dissolution of partnership firm and balance amount paid in cash after deducting a discount of 10%. How much amount is paid in cash?

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 10

Calculation of the amount payable to the creditors:
Total amount payable to the creditors ?30,000
Asset taken over by creditors at market price ?8,000.
Now amount due to the creditors is ?22,000 (30,000 – 8,000)
Final payment to creditors in cash = 22,000 – 2,200 (discount) = 19,800

Test: Dissolution Of Partnership - 2 - Question 11

How would you treat investment fluctuation reserve given in the balance sheet at the time of dissolution?

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 11

At the time of dissolution, investment fluctuation reserve should be transferred to the credit side of revaluation account. It should not be distributed as free reserve.

Test: Dissolution Of Partnership - 2 - Question 12

At the time of dissolution, how would you treat the loss shown by Profit and Loss A/c in the Balance Sheet?

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 12

Profit and Loss (Dr. balance) given in the balance sheet will be transferred to the debit side of partners capital account in their respective profit sharing ratio. It should not be transferred to the realization account.

Test: Dissolution Of Partnership - 2 - Question 13

Unrecorded asset when realised (in cash) will be _________

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 13

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 Realisation Account because realized value of all the assets is recorded in the credit side of Realisation Account.

Test: Dissolution Of Partnership - 2 - Question 14

All _____ liabilities are transferred to the ____ side of Realisation account

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 14

All external liabilities are transferred to the credit side of realization account at the time of dissolution and same will be paid off in the debit side of realization account.

Test: Dissolution Of Partnership - 2 - Question 15

Accumulated losses are transfer to ______ in ________ ratio

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 15

At the time of dissolution all accumulated profits and losses should be transferred to the partners capital account in their profit sharing ratio.

Test: Dissolution Of Partnership - 2 - Question 16

If a liability is assumed (to be paid) by a partner such partner capital account is ___

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 16

If a partner is agreed to pay off any liability at the time of dissolution of a partnership firm, in such a case following entry should be recorded in the books: Journal Entry: Realisation A/c Dr.
To Partner’s Capital A/c

Test: Dissolution Of Partnership - 2 - Question 17

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?

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 17

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

Test: Dissolution Of Partnership - 2 - Question 18

If a partner agreed to pay the unrecorded liability then ______

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 18

When a partner agreed to pay any unrecorded liability, in such a case, realization account should be debited and concerned partner’s capital account should be credited. No effect on cash account.

Test: Dissolution Of Partnership - 2 - Question 19

Realisation Account is differ from Revaluation Account as

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 19

Realisation Account is prepared only once in the life time of the firm i.e. at the time of dissolution. Revaluation account is prepared at the time of reconstitution of partnership firm i.e. change in existing profit sharing ratio, admission of a partner, retirement of a partner, death of a partner etc.

Test: Dissolution Of Partnership - 2 - Question 20

When realized value of goodwill is given in adjustment, it indicates that ________

Detailed Solution for Test: Dissolution Of Partnership - 2 - Question 20

At the time of dissolution of a partnership firm, if any realized value of goodwill is given in the question, it shows that goodwill is sold with other assets of the firm.

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