CUET 2023 Accountancy Chapter 5 (Part 2) – Dissolution of partnership firm MCQ Question and Answers – MCQs for Practice by Meenu Saini | May 25, 2022 | General | 0 comments Accountancy Chapter 5 (Part 2) – Dissolution of partnership firm MCQ Question Answers for CUET 2023 1. At the time Dissolution, all the assets of the firm are transferred to the Realisation account At ______ Valuesa.Bookb.Marketc.Economicald.Realisable Loading... 2. On dissolution, when a partner takes over an asset is debiteda.Asset Accountb.Partner’s Capital Accountc.Cash Accountd.Realisation Account Loading... 3. When the firm has agreed to pay the partner a fixed amount for realisation work irrespective of the actual amount spent, such fixed amount is debited to _________Account and Credited to __________Accounta.Capital, Realisationb.Realisation, Capitalc.Realisation, Expensesd.Partners’ Capital, Realisation Loading... 4. The _________Account is prepared to record the transactions relating to sale and realisation of assets and settlement of creditorsa.Profit and loss accountb.Realisationc.Revaluation Accountd.Partners’ capital account Loading... 5. On sale of assets Which account is debited?a.Revaluation A/cb.Realisation A/cc.Bank A/cd.Profit and loss A/c Loading... 6. On dissolution of a firm, a partner paid 1,500 Rs. for firm’s realisation expenses. Which account will be Credited?a.Cash Accountb.Capital Account of the Partnerc.Realisation Accountd.Profit & Loss A/c Loading... 7. On dissolution of the firm, partner’s capital accounts are closed througha.Loan accountb.Realisation accountc.Drawing’s accountd.Bank account Loading... 8. A firm is dissolved compulsorily in the following casesa.When Unbearable Loss is to be borne By Companyb.When the business of the firm becomes Legal After Incorporationc.When all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contractd.When a Major Partner gets Retired or dies Loading... 9. On payment of liabilities which Account is Credited?a.Loan Accountb.Realisation accountc.Bank accountd.Liability Account Loading... 10. Sundry Creditors amounted to Rs. 10000. These were paid at a discount of 5%. Realisation account will be debited bya.9500b.9000c.8,400d.7,600 Loading... 11. The accumulated profits reserves are transferred toa.Bank accountb.Realisation accountc.Partners’ capital accountd.None of these Loading... 12. On dissolution of a firm, bank overdraft is transferred toa.Partners Capital Accountb.Realisation Accountc.Overdraft Accountd.Bank Account Loading... 13. On dissolution of a firm, out of the proceeds received from the sale of assets will be paid first of alla.Partner’s Capitalb.Partner’s additional capitalc.Partner’s Loan to Firmd.Outside Creditors Loading... 14. On settlement of capital accounts., Which account will be Credited?a.Bank Accountb.Partners Current Accountc.Partners’ Capital Accountd.Partner’s Capital A/c Loading... 15. On expenses of realisation when actual expenses are paid by the partner on behalf of the firm. Which Account is Debited?a.Bank A/cb.Realisation A/cc.Partner’s Capital A/cd.Asset A/c Loading... 16. On dissolution of a firm, partner’s loan account is transferred toa.realisation accountb.partner’s current accountc.partner’s capital accountd.None of these Loading... 17. 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 Rs12,000b.Loss Rs 25,000c.Loss Rs 68,000d.Loss Rs 28,000 Loading... 18. Reason for which a dissolution is undertaken by courta.when a partner becomes insaneb.when a partner has transferred the whole of his interest in the firm to a third party;c.when a partner becomes permanently incapable of performing his duties as a partner;d.All of the Above Loading... 19. At the time of dissolution of partnership firm, the amount of ‘Bills Payable’ shown in the liability side of Balance Sheet is transferred to:a.Cash Accountb.Capital Accounts of Partnersc.Loan Account of Partnersd.Realisation Account Loading... 20. ________ Means End of the existence of firm, and no business is transacted after It except the activities related to closing of the firm as the affairs of the firm are to be wound up by selling firm’s assets and paying its liabilities and discharging the claims of the partners.a.Dispersionb.Dissolutionc.Reconstructiond.Resolution Loading... Loading... Also See : Accountancy Part 1 Accountancy Chapter 1 (Part 1) – Accounting for share capital MCQs Accountancy Chapter 2 (Part 1) – Accounting for partnership: basic concepts MCQs Accountancy Chapter 3 (Part 1) – Financial statements of a company MCQs Accountancy Chapter 4 (Part 1) – Analysis of financial statements MCQs Accountancy Chapter 5 (Part 1) – Accounting ratios MCQs Accountancy Chapter 6 – Cash flow statement MCQs Accountancy Part 2 Accountancy Chapter 1 (Part 2) – Accounting for not for profit organisation MCQs Accountancy Chapter 2 (Part 2) – Issue and redemption of debentures MCQs Accountancy Chapter 3 (Part 2) – Reconstitution of a partnership firm – admission of a partner MCQs Accountancy Chapter 4 (Part 2) – Retirement/death of a partner MCQs Submit a Comment Cancel replyYou must be logged in to post a comment.