SYBAF - Sem. 3 - Piecemeal Distribution of Cash

For finding unit value, capital is divided by

• Profit Sharing Ratio

• Capital Ratio.

• Partner's current account ratio

• none of the above

After finding the unit value of three partners A, B and C we select the unit value

• Which is lowest.

• Which is highest

• Average

• all of the above

Unit value we multiply with each partner's ___________ to calculate Proportionate Capital.

• Profit Sharing Ratio

• Capital Ratio.

• Average

• none of the above

Realisation of assets on dissolution is

• sudden

• unexpected

• creditors

• none of the above

Employee's dues are

• Preferential liabilities

• Contingent liabilities

• External liabilities

• none of the above

Preferential liabilities are

• Payable to creditors

• Payable to government

• Payable to spouse of the partner

• payable to partners

General Reserve should be

• Distributed in profit sharing ratio

• Distributed in capital ratio

• Not distributed among the partners

• remain same

Profit & Loss Account debit balance should be

• Deducted from Capitals

• Added to Capitals

• Transferred to Realisation Account

• multiple from capital

In piecemeal distribution, liabilities of a firm are paid before _____________.

• Distribution of cash among the partners.

• Sale of asset

• Revaluation of assets

• Any reserve in the Balance

Employees dues payable on the date of dissolution is treated as

• Secured creditors

• Preferential creditors

• Unsecured creditors

• None of the above