Dissolotion of Partnership Firm

Unrecorded liability paid at the time of dissolution of the firm is debited to....................... Account.

• Liability Account

• Realisation Account

• Partner's Capital Account

• None of these

Unrecorded Asset taken over by a Partner at the time of dissolution of the firm is .................... to his Capital Account.

• Debited

• Credited

Goodwill at the time of Dissolution of Firm is Closed by transferring it to Partners' Capital Accounts.

• True

• False

Against his loan of Rs.2,00,000, the partner takes an asset valued at Rs.1,60,000 in full settlement of his account, ..................amount will be transferred to Realisation Account.

• Rs.2,00,000

• Rs.40,000

• Rs.1,60,000

• None of these

Workmen Compensation Reserve appears at Rs.1,00,000 in the Balance Sheet and Claim against Workmen Compensation is of Rs.1,10,000. With how much amount will Realisation Account be debited at the time of making payment of this claim?

• Rs.1,00,000

• Rs.1,10,000

• Rs.10,000

• Claim is never paid at the time of dissolution.

A debtor of Rs.5,000, already transferred to Realisation Account agreed to pay the Realisation Expenses of Rs.4,500 in full settlement of his claim. Choose the correct option:

• Realisation Account will only be debited by Rs.4,500.

• No Entry will be passsed.

The firm had a Debit balance of Profit and Loss Account of Rs.15,000 at the time of Dissolution of Firm. Partner's Capital Accounts will be ................... by Rs.15,000.

• Debited

• Credited

Nisha paid Realiastion Expenses of Rs.10,000 out of her private funds, who was to get a remuneration of Rs.8,000 for completing dissolution process and was responsible to bear all the realisation expenses. Choose the correct option:

• Nisha's Capital Account will be Debited by Rs.18,000.

• Nisha's Capital Account will be Credited by Rs.18,000.

• Nisha's Capital Account will be Debited by Rs.8,000.

• Nisha's Capital Account will be Credited by Rs.8,000.

Ram(a partner) agreed to pay off his wife's loan of Rs.10,000.

• Realisation Account will be credited by Rs.10,000.

• Ram's Capital Account will be debited by Rs.10,000.

• Ram's Loan Account will be debited by Rs.10,000.

• Ram's Capital Account will be credited by Rs.10,000.

There was a bill of Rs.2,000, already discounted. This bill was received from Vijay, who became insolvent and a first and final dividend of 25% was received from his estate.

• Realisation Account will be Debited by Rs.2,000 and Credited by Rs.500.

• Realisation Account will be only Credited by Rs.500.