Dissolution of partnership firm

A, a creditor for Rs.25,000 accepted a plant at Rs.18,000 in settlement of his claim, which of the following statement is correct-

• a. 25,000 shall be debited to creditors a/c

• b.25,000 shall be credited to P&M a/c

• c. No entry shall be passed

• d. 7,000 shall be debited to realization a/c & 7,000 shall be credited to cash a/c

A, B & C are partners .The firm had given a loan of Rs.20,000 to B, on the event of dissolution, the loan will be settled by-

• a. Transferring it to debit side of realization a/c

• b. Transferring it to credit side of realization a/c

• c. Transferring it to debit side of B’s capital a/c

• d. B is paying A & C privately

A, B & C are partners .The firm had given a loan of Rs.20,000 to B, on the event of dissolution, the loan will be settled by-

• a. Transferring it to debit side of realization a/c

• b. Transferring it to credit side of realization a/c

• c. Transferring it to debit side of B’s capital a/c

• d. B is paying A & C privately

After transferring liabilities like creditors and bills payable in realisation account , in absence of any information regarding the payment such liabilities are treated as-

• Never paid

• Fully paid

• Partly paid

• None of the above

When realisation expenses are paid by the firm on behalf of partner, expenses are debited to

• Realisation account

• Partner's capital account

• Partners' loan account

• Bank account

Unrecorded asset when taken by any partner are shown in

• Debit side of realisation account

• Debit side of bank account

• Credit side of of realisation account

• Credit side of Bank account

At the time of dissolution of a partnership firm where do we record unrecorded liabilities when they are paid off?

• Debit side of realisation account

• Credit side of realisation account

• Debit side of bank account

• None of the above

Z one of the partner agrees to take over creditors of Rs 30000 for Rs. 20000 ,What will be the journal entry passed at time of dissolution of firm?

• Realisation account Dr.

  To bank

• Realisation account Dr.

  To Z's capital

• Realisation account Dr.

  To Z's loan

• Z's Capital account Dr.

  To Realisation

Realisation account is a -

• Personal Account

• Real Account

• Nominal Account

• None of the above

On dissolution of a firm in which ratio profit and loss on realisation is distributed among the partners-

• Capital ratio

• profit sharing ratio

• equally

• in the ratio of amount due to each partner.