Dissolution of Partnership Firm
Class 12 · Accountancy · 53 Questions
Dissolution of a partnership is different from dissolution of a firm.
A partnership is dissolved when there is a death of a partner.
A firm is dissolved when all partners give consent to it.
A firm is compulsorily dissolved when a partner decide to retire.
Dissolution of a firm necessarily involves dissolution of partnership.
A firm is compulsorily dissolved when all partners or when all except one partner become involvent.
Court can order a firm to be dissolved when a partner becomes insane.
Dissolution of partnership can not take place without intervention of the court.
On dissolution of a firm, bank overdraft is transferred to:
On dissolution of a firm, partner’s loan account is transferred to:
After transferring liabilities like creditors and bills payables in the Realisation Account, in the absence of any information regarding their payment, such liabilities are treated as:
When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to:
Unrecorded assets when taken over by a partner are shown in:
Unrecorded liabilities when paid are shown in:
The accumulated profits and reserves are transferred to:
On dissolution of the firm, partner’s capital accounts are closed through:
All assets (except cash/bank and fictitious assets) are transferred to the _____ (Debit/Credit) side of _____ Account (Realisation/Capital).
All _____ (internal/external) liabilities are transferred to the _____ (Debit/Credit) side of _____ acccount (Bank/Realisation).
Accumulated losses are transferred to _____ (Realisation/Capital Accounts) in _____ (equal ratio/profit sharing ratio).
If a liability is assumed by a partner, such Partner’s Capital Account is _____ (debited/credited).