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Accounting: Dissolution

Total questions: 10

Worksheet time: 2hrs 16mins

Name
Class
Date
1.

All the assets of the firm are _____ and all outsiders' liabilities and partner's loans and partner's capital are _____ at the time of dissolution of the firm.

a)

Disposed off, paid

b)

paid, disposed off

c)

Acquired, paid

d)

Disposed off, acquired

2.

Dissolution means stopping the activities of the partnership businesses.

a)

True

b)

False

3.

At the time of dissolution of partnership an unrecorded asset taken by X, a partner is debited to:

a)

Realisation Account

b)

X's Capital Account

c)

Cash Account

d)

Revaluation Account

4.

On dissolution of the firm amount received from sale of unrecorded asset is credited to -

a)

Partners' Capital A/c

b)

Profit & Loss A/c

c)

Cash A/c

d)

Realisation A/c

5.

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

a)

Capital ratio

b)

profit sharing ratio

c)

equally

d)

in the ratio of amount due to each partner.

6.

On dissolution of a firm Goodwill appearing in the balance sheet is transferred to -

a)

Capital account of partners

b)

Cash account

c)

Debit side of realisation account

d)

Credit side of realisation account.

7.

When Abu have a debit balance in his capital account and does not bring in cash to cover it, Hasif will receive the total capital for his original amount in his capital account

a)

True

b)

False

8.

Partners Loan Account is :-

a)

Personal Account

b)

Real Account

c)

Nominal Account

9.

Which is the reason for dissolution of partnership

a)

Bankruptcy of partner

b)

Partner's dissolve for personal reason

c)

Change in profit sharing ration

d)

Expiration of partnership term

10.

In case of insanity of a partner the partnership can be dissolved

a)

True

b)

False