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CBSE
Class 12
Accountancy
Accountancy Part - I
Dissolution of Partnership Firm

Question Bank

Practice Hub

Question Bank: Dissolution of Partnership Firm

This chapter discusses the dissolution of partnership firms, outlining the processes and key considerations involved in terminating partnerships.

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Question Bank - Dissolution of Partnership Firm

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Q1.

What is the meaning of dissolution of partnership firm?

Single Answer MCQ
Q-00002979
View explanation
Q2.

Differentiate between dissolution of partnership and dissolution of partnership firm.

Single Answer MCQ
Q-00002980
View explanation
Q3.

Describe the various modes of dissolution of a partnership firm.

Single Answer MCQ
Q-00002981
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Q4.

Explain the rules relating to the settlement of claims among all partners during dissolution.

Single Answer MCQ
Q-00002982
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Q5.

How is a Realisation Account prepared during the dissolution of a partnership firm?

Single Answer MCQ
Q-00002983
View explanation
Q6.

What are the different ways in which a partnership firm can be dissolved by agreement?

Single Answer MCQ
Q-00002984
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Q7.

When is a partnership firm compulsorily dissolved?

Single Answer MCQ
Q-00002985
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Q8.

What are the contingencies that can lead to the dissolution of a partnership firm?

Single Answer MCQ
Q-00002986
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Q9.

How can a partnership at will be dissolved?

Single Answer MCQ
Q-00002987
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Q10.

Under what grounds can a court order the dissolution of a partnership firm?

Single Answer MCQ
Q-00002988
View explanation
Q11.

What is the distinction between dissolution of partnership and dissolution of a firm?

Single Answer MCQ
Q-00002989
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Q12.

How are assets and liabilities settled during the dissolution of a partnership firm?

Single Answer MCQ
Q-00002990
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Q13.

Can a partnership be dissolved without the intervention of the court?

Single Answer MCQ
Q-00002991
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Q14.

What happens to the economic relationship between partners during the dissolution of a partnership firm?

Single Answer MCQ
Q-00002992
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Q15.

Is it necessary to close the books of account during the dissolution of a partnership firm?

Single Answer MCQ
Q-00002993
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Q16.

Can dissolution of partnership take place without the intervention of the court?

Single Answer MCQ
Q-00003000
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Q17.

Explain the process of dissolution of a partnership firm.

Single Answer MCQ
Q-00003001
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Q18.

What is the significance of a Realisation Account in the dissolution of a partnership firm?

Single Answer MCQ
Q-00003002
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Q19.

How are partner's accounts settled during the dissolution of a partnership firm?

Single Answer MCQ
Q-00003003
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Q20.

What is one way a partnership firm can be dissolved voluntarily?

Single Answer MCQ
Q-00082331
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Q21.

When does compulsory dissolution of a firm occur?

Single Answer MCQ
Q-00082332
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Q22.

Which of the following events does NOT necessarily lead to dissolution of a firm?

Single Answer MCQ
Q-00082333
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Q23.

What happens to the liabilities of the firm upon dissolution?

Single Answer MCQ
Q-00082334
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Q24.

Which account is debited when a partner pays the realisation expenses?

Single Answer MCQ
Q-00082335
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Q25.

During dissolution, how are unrecorded assets treated?

Single Answer MCQ
Q-00082336
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Q26.

What are the consequences of insolvency of partners in a firm?

Single Answer MCQ
Q-00082337
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Q27.

How does a partnership at will get dissolved?

Single Answer MCQ
Q-00082338
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Q28.

Which account do you credit when unrecorded liabilities are settled?

Single Answer MCQ
Q-00082339
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Q29.

When a firm is dissolved, accumulated profits are transferred to which account?

Single Answer MCQ
Q-00082340
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Q30.

What is the first step in the dissolution process?

Single Answer MCQ
Q-00082341
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Q31.

In the event of a partner's death, what type of dissolution occurs?

Single Answer MCQ
Q-00082342
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Q32.

What happens to the firm’s assets after the dissolution is finalized?

Single Answer MCQ
Q-00082343
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Q33.

Which account is used to record the settlement of a partner's loan during dissolution?

Single Answer MCQ
Q-00082344
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Q34.

What is the first step in the order of application of assets during the settlement of accounts after dissolution?

Single Answer MCQ
Q-00082345
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Q35.

In the event of deficiencies in capital accounts, which source is used first to settle losses?

Single Answer MCQ
Q-00082346
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Q36.

Which account is prepared to ascertain the profit or loss during the firm's dissolution?

Single Answer MCQ
Q-00082347
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Q37.

When a partner is unable to contribute towards the deficiency of his capital account, what is he considered?

Single Answer MCQ
Q-00082348
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Q38.

Unrecorded assets taken over by a partner during dissolution are recorded in which account?

Single Answer MCQ
Q-00082349
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Q39.

In which order are the partners' capital accounts settled during dissolution?

Single Answer MCQ
Q-00082350
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Q40.

If a partner's private debts exist alongside firm debts, which debts are settled first?

Single Answer MCQ
Q-00082351
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Q41.

What happens to the accumulated profits and reserves during the dissolution process?

Single Answer MCQ
Q-00082352
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Q42.

When paying unrecorded liabilities during dissolution, they are recorded in which account?

Single Answer MCQ
Q-00082353
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Q43.

Under what condition do the remaining solvent partners bear the capital loss from an insolvent partner?

Single Answer MCQ
Q-00082354
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Q44.

Which of the following statements is true regarding realisation expenses paid by a partner?

Single Answer MCQ
Q-00082355
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Q45.

What is done when a creditor accepts a non-cash asset in settlement of a claim?

Single Answer MCQ
Q-00082356
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Q46.

What role does a Realisation Account play in the context of dissolution of a partnership?

Single Answer MCQ
Q-00082357
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Q47.

What happens to the bank overdraft when a firm is dissolved?

Single Answer MCQ
Q-00082358
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Q48.

When a partner takes responsibility for a loan upon dissolution, how is this recorded?

Single Answer MCQ
Q-00082359
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Q49.

Unrecorded assets taken over by a partner during dissolution are shown in which account?

Single Answer MCQ
Q-00082360
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Q50.

What is the treatment of accumulated profits and reserves when a firm dissolves?

Single Answer MCQ
Q-00082361
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Q51.

During dissolution, how are liabilities treated in the absence of payment information?

Single Answer MCQ
Q-00082362
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Q52.

If a partner pays for realisation expenses on behalf of the firm, how is this recorded?

Single Answer MCQ
Q-00082363
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Q53.

The Realisation Account is primarily prepared for which purpose?

Single Answer MCQ
Q-00082364
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Q54.

What is the entry for settling a creditor if an asset is only partly accepted?

Single Answer MCQ
Q-00082365
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Q55.

At what point are partner's capital accounts closed during dissolution?

Single Answer MCQ
Q-00082366
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Q56.

When a partner agrees to bear the realisation expenses, how is it accounted if the firm pays?

Single Answer MCQ
Q-00082367
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Q57.

Unrecorded liabilities are treated as what when paid during dissolution?

Single Answer MCQ
Q-00082368
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Q58.

What is the effect of dissolution on the operational status of a partnership?

Single Answer MCQ
Q-00082369
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Q59.

If a partner pays for their own realisation expenses, what accounting entry is needed?

Single Answer MCQ
Q-00082370
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Q60.

How is the total profit or loss from realisation shared among partners?

Single Answer MCQ
Q-00082371
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Q61.

What account is used to record the realizations of assets and payments of liabilities during the dissolution of a partnership firm?

Single Answer MCQ
Q-00082372
View explanation
Q62.

When assets are realized during dissolution, their proceeds are transferred to which account?

Single Answer MCQ
Q-00082373
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Q63.

In which order are the payments made by a firm during dissolution?

Single Answer MCQ
Q-00082374
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Q64.

How are unrecorded liabilities treated in the Realisation Account?

Single Answer MCQ
Q-00082375
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Q65.

What happens to a partner's loan account on dissolution of the firm?

Single Answer MCQ
Q-00082376
View explanation
Q66.

In a Realisation Account, how are expenses related to the dissolution recorded?

Single Answer MCQ
Q-00082377
View explanation
Q67.

What is the profit or loss on realisation determined by?

Single Answer MCQ
Q-00082378
View explanation
Q68.

When a partner takes over an unrecorded asset, how is it accounted in the Realisation Account?

Single Answer MCQ
Q-00082379
View explanation
Q69.

What is the basis for distributing profit or loss on realization among partners?

Single Answer MCQ
Q-00082380
View explanation
Q70.

If a partner is unable to contribute towards the deficiency of their capital account, how is this treated?

Single Answer MCQ
Q-00082382
View explanation
Q71.

In case of unrecorded assets, how should they be treated during dissolution?

Single Answer MCQ
Q-00082384
View explanation
Q72.

What type of account shows the results of the realization of assets and the payment of liabilities?

Single Answer MCQ
Q-00082386
View explanation
Q73.

What is the outcome when total liabilities exceed total realizations in the Realisation Account?

Single Answer MCQ
Q-00082388
View explanation
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