CBSE Class 12 Accountancy Dissolution Of Partnership Firm MCQs Set D

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) 31
(b) 35
(c) 40
(d) 45

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. 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. According to Section 30 of Partnership Act 1932:
(a) A Minor can be admitted as a partner by the consent of all partners for the time being.
(b) New partner will bring capital and goodwill in cash
(c) New partner will inspect the books of accounts
(d) New partner is allowed to share old profits

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. Which is the main right of a partner?
(a) Share the Profits of the firm.
(b) Stop other partners for drawings
(c) Share the old profits of the firm
(d) All of the options

Answer : A

Question. at the time of dissolution of firm, loan from partner is
(a) Not transferred to realisation A/c
(b) Transferred to realisation A/transferred to partners capital A/c
(c) transferred to realisation A/c
(d) None of the options

Answer : A

Question. Where it is agreed that a partner will be paid a lump sum amount for dissolution, if the payment is made by the firm, the payment is debited to
(a) Concerned partners capital Account
(b) Realisation Account
(c) All the partners capital Account
(d) None of the options

Answer : A

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

Answer : A

Question. Which of the following is calculated at the time of Retirement of a Partner?
(a) Old Ratio
(b) Profit Sharing ratio
(c) Gaining Ratio
(d) All of the options

Answer : C

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

Answer : B

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

Answer : C

Question.In case of dissolution A one of the partner was paid only RS5000 for his loan to the firm which amounted to Rs5500. Rs 500 will be recorded in which account and on which side:
(a) Realisation account credit side correct
(b) Realisation account debit side
(c) loan account debit side
(d) A’s capital account credit side.

Answer : A

Question. In case of dissolution of partnership there was no workmen compensation fund and firm had to pay Rs3000 as compensation to workers where will be this Rs3000 recorded in the books of accounts?
(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 : A

Question.Which of the following is paid first in case of dissolution of partnership firm?
(a) Realisation expenses
(b) External liabilities
(c) Secured loan
(d) Partner’s loan

Answer : A

Question.At the time of dissolution total assets are worth Rs3,00,000 and external liabilities are worth Rs1,20,000. If assets realised 120% and realisation expenses paid were Rs4,000, then profit/loss on realisation will be:
(a) Profit Rs60,000
(b) Loss Rs60,000
(c) Loss Rs56,000
(d) Profit Rs56,000

Answer : D

Question. Deceased partners share of profit is shown in:
(a) Credit side of his capital account
(b) Debit side of his capital account
(c) Both
(d) None of the options

Answer : A

Question. Deceased partner share of profit can be calculated on the basis of
(a) Time basis and Sale Basis
(b) Sales basis
(c) Time basis
(d) None of the options

Answer : A

Question. In case of change in profit sharing ratio among the existing partners who will compensate the existing partners:
(a) Gaining partner shall compensate
(b) Only one partner
(c) Sacrificing partner shall compensate
(d) None of the options

Answer : A

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

Answer : A

Question. what will be the accounting treatment of balance of the realisation account
(a) Transferred to partners Capital A/C in their profit sharing ratio
(b) Transferred to partners Capital A/C in their old ratio
(c) Transferred to partners Capital A/C in their new ratio
(d) None of the options

Answer : A

Question. Which of the following is effect of the retirement of a partner?
(a) share of remaining partners increases
(b) share of remaining partners remains same
(c) share of remaining partners decreases
(d) All of the options

Answer : A

Question. Only in Balance Sheet At the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.
(a) Debit side of Capital account of all the partners
(b) Credit side of Capital account of all the partners
(c) Both
(d) None of the options

Answer : B

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

Answer : A

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

Answer : C

Question.In case of dissolution, total creditors of the firm were Rs40,000; creditors worth Rs10000 were given a piece of furniture costing Rs8000 in full and final settlement. Remaining creditors allowed a discount of 10%. What will be the the amount with which cash will be credited in the realisation account for payment to creditors:
(a) 28,000
(b) 27,000correct.
(c) 20,000
(d) 25,000

Answer : B

Question. Section 41 of partnership act 1932 deals with dissolution of a firm
(a) by mutual agreement
(b) compulsory dissolution correct
(c) by notice
(d) by order of court.

Answer : B

Question. Court may order dissolution of partnership firm
(a) when a partner has become of unsound mind
(b) when a partner is permanently incapacitated
(c) when a partner is found guilty of misconduct
(d) all of the above.

Answer : D

Question.Settlement of accounts in case of dissolution of partnership is dealt with which section of partnership act 1932?
(a) Section 45
(b) section 46
(c) section 47
(d) section 48

Answer : D

Question.When realisation expenses are to be borne by a partner, actual realisation expense is credited to:
(a) Partners capital a/c
(b) Cash a/c
(c) Realisation a/c
(d) None of the above

Answer : D

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

Answer : B

Question. Unrecorded assets when realised is credit to
(a) Partners capital A/c
(b) Current Account
(c) None of the options
(d) Realisation A/c

Answer : D

Question. Unrecorded Liabilities when paid are debited to
(a) Realisation A/c
(b) Partners capital A/c
(c) Current Account
(d) None of the options

Answer : A

Question. Sacrifice ratio is used only for
(a) Revaluation profit
(b) Distribution of Premium for goodwill
(c) Distribution of Reserve
(d) Revaluation of Assets

Answer : B

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) 31
(b) 35
(c) 40
(d) 45

Answer : A

Question. Which of the following is prepared at the time of retirement of a partner?
(a) Revaluation Account
(b) Profit and Loss Suspense Account
(c) Both
(d) None of the options

Answer : A

Question. Which of the following item is not shown in the credit side of deceased partners capital account?
(a) Share of loss
(b) Share of profit
(c) Revaluation profit
(d) All of the options

Answer : A

Question. Bad debts recovered will be recorded in:
(a) Dr. Side of revaluation account
(b) Cr. Side of revaluation account
(c) Both
(d) None of the options

Answer : B

Question. At the time of dissolution of firm, “Loan of partners” (Loans given by partners to the firm) is paid out of the amount realised on sale of assets :
(a) After making the payment of loans given by third party
(b) After making the payment of balance of Capital Accounts of partners
(c) After making the payment of above (a) and (b)
(d) Before the payment of loans given by third party

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

Answer : C

Question. Except outgoing partner, which other partner can be credited at the time of settlement of goodwill amount?
(a) Sacrificing partner
(b) Gaining partner
(c) All the partners
(d) None of the options

Answer : A

Question. Retirement or death of a partner will create a situation for the continuing partners, which is known as:
(a) Dissolution of firm
(b) Amalgamation
(c) Reconstitution of Firm
(d) None of the options

Answer : C

Question. Which of the following is calculated at the time of Retirement of a Partner?
(a) Gaining Ratio
(b) Old Ratio
(c) Profit Sharing ratio
(d) All of the options

Answer : A

Question. Except outgoing partner, which other partner can be credited at the time of settlement of goodwill amount?
(a) Sacrificing partner
(b) Gaining partner
(c) All the partners
(d) None of the options

Answer : A

Question. Retirement or death of a partner will create a situation for the continuing partners, which is known as:
(a) Reconstitution of Firm
(b) Dissolution of firm
(c) Amalgamation
(d) None of the options

Answer : A

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

Answer : B

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

Answer : C

Question. When a new partner is admitted he acquires his share of profits from the old partners , this will ____ the old partners shares in profits:
(a) Reduce
(b) Remain same
(c) No change
(d) Decrease

Answer : A

FILL IN THE BLANKS:

Question.First of all____________ of the firms will be settled out of sources of the business.
Answer : Liabilities

Question.All the accounts are settled among partners and creditors at the time of ______________of a business.
Answer : Dissolution

Question.______________of partner will be paid off, before the settlement of partner’s capital.
Answer : Loan

Question.At the time of admission partnership firm is dissolved if business is.
Answer : Discontinued

Question.Admission of a partner is termination of _____________and not a dissolution of ____________
Answer : Agreement,firm

Question.Partners are liable to settle the account of accounts payable even from their ___________sources, if they are solvent.
Answer : personal

Question.If all partners mutually decide for the dissolution, it will be dissolution of the__________
Answer : Firm