CBSE Class 12 Accountancy Dissolution Of Partnership Firm Worksheet Set B

MCQ Questions for NCERT Class 12 Accountancy Dissolution Of Partnership Firm 

Question: Anu, Bina and Charan are partners. The firm had given a loan of Rs 20,000 to Bina. They decided to dissolve the firm. In the event of dissolution, the loan will be settled by:
(a)Transferring it to debit side of Realisation A/c
(b) Transferring it to credit side of Realisation A/c
(c) Transferring it to debit side of Bina’s capital account
(d) Bina paying Anu and Charan privately 

Answer: C

Question: After settlement of dissolving firm, bank account may have_________ balance.
(a) Debit
(b) credit
(c) overdraft
(d) nil   

Answer: D

Question: At the time of dissolution of firm, at which stage the balance of partner’s capital accounts is paid?
(a) After making payment to third party loan
(b) Before making 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: Goodwill already appearing in the balance sheet of the firm will be transferred on the ______ side of _________ account
(a) Debit, capital
(b) debit, realization
(c) debit, bank
(d) credit , bank 

Answer: B

Question: On dissolution of the firm, partner’s capital accounts are closed through
(a) Realisation a/c
(b) Drawings a/c
(c) bank a/c
(d) loan a/c 

Answer: C

Question:  On firm’s dissolution , when a partner voluntarily gives his personal asset to firm’s creditor as payment, the account credited will be
(a) Realization A/c
(b) Partner’s Capital A/c
(c) Cash A/c
(d) None of the A/c 

Answer: D

Question: Investments valued Rs. 2,00,000 were not shown in the books. One of the creditors took over these investments in full satisfaction of his debt of Rs. 2,20,000. How much amount will be deducted from creditors?
(a) Rs. 20,000
(b) Rs. 2,20,000
(c) Rs. 4,20,000
(d) Rs. 2,00,000 

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 realized on sale of assets:
(a) After making the payment of loans given by third party
(b) After making 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: On dissolution of a firm, Realisation A/c is debited with
(a) All the liabilities of the firm
(b) cash received on the sale of assets
(c ) Any asset taken over by one of the partners
(d) All assets to be realized 

Answer: D

Question: If opening capitals of partners are A Rs. 3,00,000, B Rs.2,00,000 and C Rs. 1,00,000 and their drawings during the year are A Rs. 50,000, B Rs. 40,000 and C Rs. 30,000 and creditors are Rs. 60,000, what will be the amount of assets of the firm?
(a) Rs 5,40,000
(b) Rs 4,20,000
(c) Rs 4,80,000
(d) Rs 6,60,000 

Answer: A

 Fill in the blanks:

Question: No entry is required when any __________ accepts fixed assets in lieu of his balance(due).
Answer: creditor

Question: Provision for doubtful debts is transferred on the __________ side of _________ account, in case of dissolution.
Answer: Credit, realisation

Question: Partner’s loan on the asset side is transferred on the _______ side of ______account.
Answer: Debit, capital

Question: Under partnership at __________, any partner may ask for dissolution of the firm.
Answer: will

Question: _____ debts are paid by the firm through firm’s _________ at the time of dissolution.
Answer: Firm’s, assets

Question: At the time of dissolution, after settling all the accounts ________ account automatically closed.
Answer: Cash/Bank

Question: At the time of dissolution, loan from partner’s relative is transferred to ______ account.
Answer: Realisation

Question: If the question is silent about settlement of any liability, it is assumed that amount _________ to ___________ is paid.
Answer:Equal, book value

Question: Workmen Compensation Reserve was nil and liability was Rs. 15000. In such a situation _________ account is debited and _________ account is credited.
Answer:  Realisation , Bank

Question: Debtors Rs. 2,64,000, Provision for Doubtful Debts Rs. 24,000, Rs. 48000 of the book debts proved bad. The amount realized from debtors is ___________.
Answer: 21,600

Match the column :

1. Dissolution of a firm which, on any ground, is regarded to be just and equitable                            A. Dissolution on the happening of certain contingencies
2. Dissolution of a firm by the death of a partner, subject to contract between the partners.               B. Dissolution by court
3. Dissolution of a firm when some event has taken place which makes it unlawful for the partners.    C. Compulsory Dissolution
4. Dissolution of a firm in accordance with a contract between the partner                                         D. Dissolution by Agreement                                                                                                                                                                                                                                            
Answer: 1- B, 2- A , 3-C , 4-D