CBSE Class 12 Accountancy Dissolution Of Partnership Firm Worksheet Set A

CBSE Class 12 Accountancy Worksheet - Dissolution of a Partnership Firm. CBSE issues sample papers every year for students for class 12 board exams. Students should solve the CBSE issued sample papers to understand the pattern of the question paper which will come in class 12 board exams this year. The sample papers have been provided with marking scheme. It’s always recommended to practice as many CBSE sample papers as possible before the board examinations. Sample papers should be always practiced in examination condition at home or school and the student should show the answers to teachers for checking or compare with the answers provided. Students can download the sample papers in pdf format free and score better marks in examinations. Refer to other links too for latest sample papers. 

TOPIC – Dissolution of a partnership firm

MCQ Questions for NCERT Class 12 Accountancy Dissolution Of Partnership Firm

Question. On firm’s dissolution, when a partner voluntarily gives his personal asset to firm’s creditor payment, the account credited will be
(a) Realization a/c 
(b) Partner’s Capital a/c
(c) bank a/c
(d) none of these

Answer: B

Question. At the time of dissolution, partner’s loan account is closed by
(a) Transferring in realization
(b) payment
(c) abolished
(d) none of these

Answer: B

Question. Accumulated losses and reserves are transferred to the debit of ______ a/c
(a) Revaluation
(b) partner’s capital
(c) realization
(d) bank

Answer: B

Question. Realization account is a ___________ account
(a) Real
(b) personal
(c) nominal
(d) cash

Answer: C

Question. Unrecorded liabilities when paid are debited to
(a) Realisation a/c
(b) Partner’s Capital a/c
(c) bank a/c
(d) none of these

Answer: A

Question. At the time of dissolution, goodwill of the firm is closed by transferring it to ___________ account
(a) Realization
(b) partners loan
(c) partner’s capital
(d) bank

Answer: A

Question. Realisation expenses are debited to
(a) Bank a/c
(b) realization a/c
(c) revaluation a/c
(d) either realization or bank a/c

Answer: B

Question. Unrecorded assets taken over by any creditor will ___________
(a) Be debited to realization account
(b) be debited and credited to realization account
(c) be credited to realization account
(d) not be recorded anywhere

Answer: D

Question. Accumulated profits and losses are transferred to credit of
(a) Revaluation A/c
(b) Partner’s Capital A/c
(c) Realisation A/c
(d) Bank A/c

Answer: B

Question. At the time of dissolution of a firm, ___________ account is prepared.
(a) Revaluation
(b) Realisation
(c) Profit and Loss
(d) Trading

Answer: B

Fill in the blanks: 

Question. At the time of dissolution, partner’s current account balance will be transferred to ________ account.
Answer: Partner’s Capital

Question. Provision for doubtful debts is transferred to _______ side of Realisation A/c.
Answer: Credit

Question. If any partner takes any asset, then such partner’s capital account will be ____
Answer: Debited

Question. At the time of dissolution of firm assets are ___________ and liabilities are ____________.
Answer: sold, paid off

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

Match the following:

1. Change in existing relationship of partners              A. Dissolution of firm
2. Partner’s Loan                                                       B. Realisation A/c
3. Dissolution Expenses borne by partner                    C. paid after outside liabilities
4. Discontinuance of relationship between all partners D. debit partner’s capital a/c
5. Unrecorded assets                                                 E. Dissolution of partnership
Answer: 1-E, 2-C ,3-D, 4-E, 5-B

Q 1 Distinguish between Realisation account & Revaluation account.

Q 2 Why is the balance of cash or bank not transferred to realisation account?

Q 3 Pass the necessary journal entries in the following cases:

(i) An unrecorded asset taken over by a partner

(ii) An unrecorded asset given to our creditor

(iii) Payment to creditors worth Rs 3000 if they accept stock of the same value

(iv) partner A takes over the liability of Mrs A’s loan of Rs 10000.

Q 4 Mention two internal liabilities whose payment does not require cash payment at\ the time of dissolution of the firm.

Q 5 Explain the provisions of sec 48 of partnership act.

Q 6 Distinguish between firms debts & private debts.

Q 7 Give the circumstances under which partnership firm can be dissolved.

Q 8 Are provisions against assets to be paid? Give reason.

Q 9 How do we deal with the following at the time of dissolution of the firm:

(i) Undistributed profits / losses

(ii) Fictitious assets

(iii) Partners loan account

(iv) If the question is silent regarding realisation of intangible asset

(v) If the question is silent regarding realisation of tangible asset

(vi) If the question is silent regarding payment of liability.

Q 10 Pass the journal entries in the following cases:

(i) Expenses of realisation Rs 7000 were to be borne by Ram, a partner. Ram used firms cash for paying these expenses.

(ii) Expenses of realisation Rs 8000 were to be borne by Ritu, a partner.

(iii) Realisation expenses paid by the firm amounted to Rs 3000. B had to bear these expenses.

(iv) An asset which had already been written off fetched Rs 8000.

(v) The firm had a JLP of Rs 50000 on which the premium paid was regarded as a business expense. The surrender value of the policy was Rs 15000. The Insurance co. Also paid a special bonus of Rs 6000.

(vi) Hari was to be given a commission of 3% on the net cash realised on dissolution & he was to meet all realisation expenses.The cash realised from sale of assets was Rs 76000& cash paid for liabilities amounted to Rs 16000. Actual expenses were Rs 7400.

(vii) L , a creditor to whom Rs 16000 were due to be paid took over machinery at Rs 20000. Balance was paid by him in cash.

(viii) Expenses of realisation were Rs 2000.

(ix) An unrecorded liability 0f Rs 5500 settled at a discount of 20%.

(x) Realisation expenses Rs 2000 were paid by Kishore.

(xi) Dissolution expenses were 9000. Out of the said expense Rs 4000 were to be borne by the firm and the balance by a partner.

(xii) Dissolution expenses were 9000. Out of the said expense Rs 4000 were to be borne by the firm and the balance by a partner. The expenses were paid by a partner.

Please click the link below to download full pdf file for CBSE Class 12 Accountancy Worksheet - Dissolution of a Partnership Firm.