Dissolution of 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

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.

Which of the following does not result in the dissolution of a partnership?

• Marriage of a partner

• Withdrawal of a partner

• Addition of a new partner

• Death of a partner

3-realization account is a 

• a) nominal account
• b) personal account
• c) real account
• d) impersonal account