CBSE Class 12 Accountancy Dissolution of Partnership Firm Worksheet Set 03

 

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

Answer: B

Question. At the time of dissolution of a firm, Debtors were Rs. 17,000 out of which Rs. 500 became bad and the rest realised 60%. Which account will be debited and by how much amount?
(a) Realisation Account by Rs. 16,500.
(b) Profit and Loss Account by Rs. 500.
(c) Cash Account by Rs. 9,900.
(d) Debtors Account by Rs. 7,100.

Answer: C

Question. Deceased partners share of profit is to be transferred to his account by:
(a) P/L Suspense A/c
(b) P/L Adjustment A/c
(c) P/L Appropriation A/c
(d) Revaluation Account

Answer: A

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

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

Answer: A

Question. Revaluation Account is also known as ________
(a) Asset Account
(b) Profit and Loss Account
(c) Profit and Loss Adjustment Account
(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. 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. On taking responsibility of payment of realisation expenses by a partner, the account credited will be :
(a) Realisation Account
(b) Cash Account
(c) Capital Account of the Partnei
(d) None of the Above

Answer: C

Question. On payment of expenses of dissolution, account will be debited :
(a) Realisation Account
(b) Cash Account
(c) Profit & Loss Account
(d) None of the Above

Answer: A

Question. On dissolution of a firm, partners’ capital accounts balance was Rs.63,000; creditors balance was Rs. 12,000 and profit & loss account debit balance was Rs.6,000. Profit on realisation of assets was Rs.7,800. Total amount realised from assets was:
(a) Rs.81,000
(b) Rs.76,800
(c) Rs.70,800
(d) None

Answer: B

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. On dissolution, if a partner undertakes to make payment of a liability of the firm, the account to be debited is:
(a) profit & Loss Account
(b) Realisation Account
(c) Partner’s Capital Account
(d) Cash Account

Answer: B

Question. Unrecorded liabilities when paid are shown in :
(a) Debit side of Realisation Account
(b) Debit side of Bank Account
(c) Credit side of Realisation Account
(d) Credit side of Bank Account

Answer: A

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

Answer: D

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. 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: A

Question. On dissolution of the firm , all assets are transferred to realisation account at
(a) Market Value
(b) Cost value
(c) Book Value
(d) None of the options

Answer: C

Question. Give circumstances under which the fixed capitals of partners may change
(a) Both
(b) When fresh capital is introduced by the partner
(c) When a part of capital is withdrawn by the partner
(d) None of the options

Answer: A

Question. ............ is prepared at the time of dissolution :
(a) Revaluation Account
(b) Profit & Loss Account
(c) Profit and Loss Appropriation Account
(d) Realisation Account

Answer: D

 

 

 

 

 

 

 

You are required to pass the necessary journal entries for the (i) transfer of loss to the capital accounts of the partners and (ii) making final payment to the partners.

 

 

(xvii) Out of the total Creditors Rs 40,000, one of the creditors agreed to accept Debtors amounting Rs 20,000 at Rs 17,900 and balance paid in cheque.

 

(xviii) Partner A’s loan Rs 3,000 paid in cash.

 

(xix) Mrs. A’ s loan Rs 5,000 paid in cheque.

 

(xx) Furniture worth Rs 15,000 taken over by Creditors.

 

Q.8. The following is the Balance sheet of X and Y on 30th June 2011.

The firm was dissolved on 30^th June 2011 and the following arrangement was decided upon:

(a)X agreed to pay off his Brother’s loan. (b) Debtors of Rs 5,000 proved bad.

(c) Other assets realized as follows: Plant 20% less, Building 100% more, Goodwill 60% (d) Sundry creditors were settled at 5% discount. (e) Y accepted stock at Rs 8,000 and all investments at Rs12,000 and X took over Bills Receivable at 20% discount. (f) Realization Expenses amounted to Rs 2,000. Prepare necessary ledger accounts.

 

Q.9. The following is the Balance sheet of X and Y on 31st Dec. 2011.

The firm was dissolved on 31st December2011 and following was found:

 

(a)X promised to pay off Mrs. X’s loan and took away the stock at 20% discount.

 

(b)Y took away half the investments at 10% discount.

 

(c)Debtors falling due on 1^st Nov 2012 were realized at a discount of 6% p.a.

 

(d)Creditors falling due on 31^st January, 2012 were paid at@ 6% discount p.a.

 

(e)Fixed assets realized at Rs 71,000 and remaining investments realized at Rs 4,500.

 

(f) There was old furniture which has been written off completely from the books. Y agreed to take away the same at the price of Rs 300. (g) Realization expenses were Rs 1,000. Prepare necessary ledger A/cs.

 

Q.10. Anju, Manju and Sanju were partners in affirm sharing profits in the ratio of 2:2:1. On 31^st May 2012 their B/S was as follows

On this date the firm was dissolved. Anju was appointed to realize the assets. Anju was to receive 5% commission on the sale of assets( except cash) and was to bear all expenses of realization. Anju realized the assets as follows:-

 

Debtors Rs 60,000, Stock Rs 35,500. Investments Rs 16,000, Plant 90% of the book value. Expenses of realization amounted to Rs 7,500. Commission received in advance was returned to the customers after deducting Rs 3,000. Firm had to pay Rs 8,500 for outstanding salary not provided for earlier. Compensation paid to employees amounted to Rs 17,000, This liability was not provided in the balance sheet Rs 20,000 had to be paid for provident fund. Prepare Realization Account, Capital Accounts and Cash account.