CBSE Class 12 Accountancy Dissolution Of Partnership Firm MCQs Set C

Question. At the time of dissolution of the firm , if goodwill appears in the balance sheet , it is transferred to
(a) Capital A/c
(b) Revaluation A/c
(c) Realisation A/c
(d) Current Account

Answer : C

Question. Section __ of the Indian Partnership Act provides that a new partner shall not be inducted into a firm without the consent of all existing partners
(a) 40
(b) 35
(c) 31
(d) 45

Answer : C

Question. At the time of dissolution of firm, at which stage the balance of partner’s capital accounts is paid?
(a) After making the payment to third party’s loans
(b) Before making the payment of partners in respect of their loans
(c) After making the payment to third party for their loans as well as partners loans
(d) None of the above.

Answer : C

Question. Revaluation Account is also known as ________
(a) Profit and Loss Adjustment Account
(b) Asset Account
(c) Profit and Loss Account
(d) None of the options

Answer : A

Question. At the time of increase in the value of assets which account should be debited while preparing Revaluation Account?
(a) Asset A/c
(b) Partners Capital A/c
(c) Revaluation Account
(d) None of the options

Answer : A

Question. Why is realisation account prepared
(a) Closing the accounts
(b) Opening the account
(c) For profit sharing
(d) None of the optionsa

Answer : A

Question. How will goodwill account appearing in the balance sheet be treated in case of dissolution of the firm
(a) By transferring to realisation A/c (Dr. Side)
(b) By transferring to realisation A/c (Cr. Side)
(c) Both Side
(d) None of the options

Answer : A

Question. How will you treat accumulated profit/losses at the time of dissolution of the firm
(a) Transferred to partners Capital A/C
(b) Transferred to partners Salary A/C
(c) Transferred to partners Capital A/C
(d) None of the options

Answer : C

Question. Revaluation account is not prepared at the time of _________________
(a) Dissolution
(b) Admission
(c) Retirement
(d) All of the options

Answer : A

Question. Why new profit ratio is determined even for old partners?
(a) Change in the agreement among all partners
(b) No change in agreement
(c) Due to change in external environment
(d) All of the options

Answer : A

Question. Sacrificing ratio is calculated for
(a) old partners
(b) new partners
(c) all partners (including new)
(d) None of the options

Answer : A

Question. Gaining Ratio is Applicable for:
(a) Retiring partners share of goodwill only
(b) For the distribution of Reserves and profits
(c) For the Calculation of profit
(d) For Revaluation

Answer : A

Question. Why there is need to calculate New profit share ratio
(a) After retirement of a partner, there will be change in the continuing partners ratio.
(b) After retirement of a partner, there is no change in the continuing partners ratio.
(c) To settle the loan amount due to outgoing partner
(d) All of the options

Answer : A

Question. Why is Profit and Loss Adjustment Account prepared
(a) To record those transaction and errors which were left while preparing the final accounts
(b) To record those transaction which were left while preparing the revaluation A/c
(c) To record those transaction which were left while preparing the Capital A/c
(d) None of the options

Answer : A

Question. If total assets are Rs.2,00,000; total liabilities are Rs.40,000; amount realised on sale of assets is Rs. 1,75,000 and realisation expenses are Rs.3,000, the profit or loss on realisation will be :
(a) Profit Rs. 12,000
(b) Loss Rs.68,000
(c) Loss Rs.28,000
(d) Loss Rs.25,000

Answer : C

Question. Profit and loss appropriation A/c is prepared to
(a) Find out divisible profit
(b) Create reverse fund
(c) Find out net profit
(d) None of the options

Answer : A

Question. On firm’s dissolution which of the following account is prepared at the last?
(a) Realisation account
(b) partners capital account
(c) cash account partners
(d) loan account

Answer : C

Question. On dissolution of a firm fictitious assets are transferred to:
(a) credit side of partners capital account
(b) debit side of realisation account
(c) debit side of partners capital account
(d) credit side of realisation account

Answer : C

Question. On dissolution, Goodwill Account is transferred to
(a) In the Capital Accounts of Partners.
(b) On the Credit of Cash Account.
(c) On the Debit of Realisation Account
(d) On the Credit of Realisation Account.

Answer : C

Question. Reason for preparing Profit and Loss suspense Account is to
(a) Adjust the profit of deceased partner
(b) Adjust the Revaluation profit
(c) Adjust the capital of deceased partner
(d) Adjust the Revaluation loss

Answer : C

Question. At the time of dissolution partner gives his personal asset to firm’s creditor in settlement, the account credited will be
(a) Realisation A/c.
(b) Partner’s Capital A/c.
(c) Cash A/c.
(d) Creditor’s A/c.

Answer : B

Question. W, X, Y and Z are equal partners, W, X and Z died together in plane crash, this accidents results in
(a) None of the options
(b) Dissolution of partnership
(c) Dissolution of firm
(d) Dissolution of partnership as well as firm

Answer : D

Question. On dissolution of a firm, a partner’s capital account has a credit balance of Rs.42,000. His share of profit in realisation account is Rs. 9,000. He has paid firm’s realisation expenses Rs.3,000. He will finally get a payment of:
(a) Rs.39,000
(b) Rs.42,000
(c) Rs.54,000
(d) Rs.48,000

Answer : C

Question. Is admission of a new partner a reconstitution of partnership firm:
(a) It is dissolution of firm
(b) Yes
(c) It is called merger
(d) None of the options

Answer : B

Question. The incoming partner cannot acquire his share of profits :
(a) From the old partners in their old profit sharing ratio
(b From one or more partners (not from all partners)
(c) From the old partners in some agreed ratio
(d) From the old partners in their new profit sharing ratio

Answer : D

Question. At the time of admission of a new partner, the new partner acquires his share from the old partners in the:
(a) Sacrificing ratio
(b) New Ratio
(c) New Ratio
(d) Old ratio

Answer : A

Question. Revaluation Account is also known as ________
(a) Profit and Loss Adjustment Account
(b) Asset Account
(c) Profit and Loss Account
(d) None of the options

Answer : A

Question. Gaining ratio is the ratio in which continuing partners have ______ the share from the outgoing partner
(a) Sacrificed
(b) Both Acquired and Sacrificed
(c) None of the options
(d) Acquired

Answer : D

Question.At the time of dissolution of partnership an unrecorded asset taken by X a partner is debited to:
(a) X capital account
(b) realisation account
(c) cash account
(d) none of the above

Answer : A

Question. Realisation account is a :
(a) personal account
(b) real account
(c) nominal account
(d) none of the above.

Answer : C

Question. On dissolution of a firm in which ratio profit and loss on realisation is distributed among the partners:
(a) capital ratio
(b) profit sharing ratio
(c) equally
(d) in the ratio of amount due to each partner.

Answer : B

Question. On dissolution the balance of partners capital account appearing on the credit side of the balance sheet is transferred to :
(a) debit side of realisation account
(b) credit side of realisation account
(c) debit side of partners capital account
(d) credit side of partners capital account.

Answer : D

Question. AB and C are partners. The firm had given a loan of Rs20,000 to (b) They decided to dissolve the firm. In the event of dissolution the loan will be settled by transferring it to the:
(a) debit side of realisation account
(b) transferring it to the credit side of realisation account
(c) transfer it to the debit side of B’s capital account
(d) B paying A and C privately.

Answer : C

Question. Sundry creditors amounted to ₹ 8,000. They were paid at a discount of 5 %. Realisation A/c will be debited by :
(a) ₹ 8,000
(b) ₹ 7,600
(c) ₹ 400
(d) ₹ 8,400

Answer : B

Question. Why is realisation account prepared
(a) Closing the accounts
(b) Opening the account
(c) For profit sharing
(d) None of the options

Answer : A

Question. At the time of dissolution of the firm , the assets and liabilities appearing in the balance sheet are transferred to
(a) Realisation A/c
(b) Real Account
(c) Capital A/c
(d) None of the options

Answer : A

Question. Why a new partner is admitted in the firm?
(a) For Increase the Capital of the firm.
(b) For Increase the Number of partners
(c) For Increase the Profit sharing Ratio
(d) None of the options

Answer : A

Question. When the New ratio is deducted with Old Ratio we get:
(a) Sacrifice only
(b) Profit Sharing ratio
(c) None of the options
(d) Gaining Ratio

Answer : D

Question. New Ratio Old Ratio is called
(a) Gaining Ratio
(b) Profit Sharing ratio
(c) Sacrificing ratio
(d) None of the options

Answer : A

Question. How sacrificing ratio is differ from gaining ratio on the basis of mode of calculation
(a) calculated by taking difference between old and new ratio
(b) calculated by taking difference between new and old ratio
(c) calculated by taking difference between old and gaining ratio
(d) None of the options

Answer : A

Question. Gaining Ratio is Applicable for:
(a) Retiring partners share of goodwill only
(b) For the distribution of Reserves and profits
(c) For the Calculation of profit
(d) For Revaluation

Answer : A

Question. At the time of dissolution of firm, at which stage the balance of partner’s capital accounts is paid?
(a) After making the payment to third party’s loans
(b) Before making the payment of partners in respect of their loans
(c) After making the payment to third party for their loans as well as partners loans
(d) None of the above.

Answer : C

Question. If creditors are Rs.25,000, capital is X 1,50,000 and cash balance is X 10,000, what will be the amount of sundry assets?
(a) Rs. 1,75,000
(b) X 1,85,000
(c) X 1,65,000
(d) X 1,40,000

Answer : C

Question. Amount received from sale of unrecorded asset at the time of dissolution ofthe firm is credited to
(a) Partners’ Capital Accounts.
(b) Profit and Loss Account.
(c) Realisation Account.
(d) Cash Account.

Answer : C

Question. At the time of dissolution of the firm , if goodwill appears in the balance sheet , it is transferred to
(a) Realisation A/c
(b) Revaluation A/c
(c) Capital A/c
(d) Current Account

Answer : A

Question.On dissolution of the firm amount received from sale of unrecorded asset is credited to :
(a) partner’s capital account:
(b) profit and loss account
(c) cash account
(d) realisation account

Answer : D

Question.New ratio is not to be calculated on:
(a) Admission of a partner
(b) retirement of a partner
(c) death of a partner
(d) dissolution of a partnership

Answer : D

Question. At the time of firm’s dissolution credit balance of profit and loss account is credited to :
(a) realisation account
(b) partners capital account
(c) cash account
(d) profit and loss account.

Answer : B

Question. The modes by which a firm may be dissolved are
(a) All of the options
(b) By Mutual agreement
(c) Compulsory Dissolution
(d) By Notice

Answer : A