CBSE Class 12 Accountancy Dissolution Of Partnership Firm MCQs Set B

Refer to CBSE Class 12 Accountancy Dissolution Of Partnership Firm MCQs Set B provided below. CBSE Class 12 Accountancy MCQs with answers available in Pdf for free download. The MCQ Questions for Class 12 Accountancy with answers have been prepared as per the latest syllabus, CBSE books and examination pattern suggested in Class 12 by CBSE, NCERT and KVS. Multiple Choice Questions for Chapter 5 Dissolution Of Firm are an important part of exams for Class 12 Accountancy and if practiced properly can help you to get higher marks. Refer to more Chapter-wise MCQs for CBSE Class 12 Accountancy and also download more latest study material for all subjects

MCQ for Class 12 Accountancy Chapter 5 Dissolution Of Firm

Class 12 Accountancy students should refer to the following multiple-choice questions with answers for Chapter 5 Dissolution Of Firm in Class 12. These MCQ questions with answers for Class 12 Accountancy will come in exams and help you to score good marks

Chapter 5 Dissolution Of Firm MCQ Questions Class 12 Accountancy with Answers

Question: When Retiring partners balance is treated as loan , in the absence of any information, he will get:

a) Interest only 6% per annum

b) Interest 7.5%

c) Interest 12%

d) None of the options

Answer: Interest only 6% per annum

 

Question: Deceased partners share of profit is to be transferred to his account by:

a) P/L Suspense A/c

b) P/L Adjustment A/c

c) P/L Appropriation A/c

d) Revaluation Account

Answer: P/L Suspense A/c

 

Question: Deceased partners share of profit is shown in:

a) Credit side of his capital account

b) Debit side of his capital account

c) Both

d) None of the options

Answer: Credit side of his capital account

 

Question: Calculation of sharing of profit up to date of death will be calculated on the basis of

a) Both Time basis and Turnover basis

b) Yearly basis

c) Monthly basis

d) None of the options

Answer: Both Time basis and Turnover basis

 

Question: When amount due to retiring partner is paid with interest, it will be paid through which account?

a) His Loan Account

b) His capital account

c) His Drawing account

d) None of the options

Answer: His Loan Account

 

Question: Partners Capital Account will be debited in case o

a) Loss on Revaluation

b) Profit on Revaluation

c) General Reserve

d) None of the options

Answer: Loss on Revaluation

 

Question: When a Partner dies, amount due to him will be paid to:

a) His Executor

b) Gainer partner

c) Remaining Partners

d) None of the options

Answer: His Executor

 

Question: Retiring partners share of goodwill is calculated as follows:

a) Value of firms goodwill x His Share of profit

b) Value of firms goodwill x Gainer partners share

c) Value of firms goodwill x All partners share

d) None of the options

Answer: Value of firms goodwill x His Share of profit

 

Question: Deceased partner share of profit can be calculated on the basis of

a) Time basis and Sale Basis

b) Sales basis

c) Time basis

d) None of the options

Answer: Time basis and Sale Basis

 

Question: The outgoing partners share in the profits may be adjusted through

a) Profit and Loss suspense account

b) Profit and Loss account

c) Profit and Loss Appropriation account

d) Revaluation Account

Answer: Profit and Loss suspense account 

 

Question: The continuing partners may agree on a specified new profit sharing ratio so in that case the specified ratio will be the:

a) New ratio

b) Old ratio

c) Sacrificing ratio

d) None of the options

Answer: New ratio

 

Question: Bad debts recovered will

a) Increase the Revaluation Profit

b) Decrease the Revaluation Profit

c) Both

d) None of the options

Answer: Increase the Revaluation Profit

 

Question: Reason for preparing Profit and Loss suspense Account is to

a) Adjust the profit of deceased partner

b) Adjust the Revaluation profit

c) Adjust the capital of deceased partner

d) Adjust the Revaluation loss

Answer: Adjust the profit of deceased partner

 

Question: What is the meaning of change in the profit sharing ratio:

a) Purchase of shares of profit by one partner form another partner

b) In which all partner including the new partner share future profit and loss

c) In which all partner including the retired partner share future profit and loss

d) None of the options

Answer: Purchase of shares of profit by one partner form another partner

 

Question: The circumstances when change in profit sharing ratio is needed:

a) Both

b) When existing partners decide

c) At the time of admission/retirement/death

d) None of the options

Answer: Both

 

Question: In case of change in profit sharing ratio among the existing partners who will compensate the existing partners:

a) Gaining partner shall compensate

b) Only one partner

c) Sacrificing partner shall compensate

d) None of the options

Answer: Gaining partner shall compensate

 

Question: ______ is a kind of reserve created for payment of compensation in case of accident.

a) Workmen compensation Reserve

b) Profit and loss compensation Reserve

c) Investment compensation Reserve

d) Investment compensation Reserve

Answer: Workmen compensation Reserve

 

Question: The decision in garner Vs Murray is exactly to section of the Indian partnership Act 1932

a) Section 48

b) Section 41

c) Section 37

d) None of the options

Answer: Section 48

 

Question: On dissolution of the firm , Cash balance is transferred to

a) Bank Account

b) Realisation Account

c) Partners capital A/c

d) None of the options

Answer: Bank Account

 

Question: On dissolution of the firm , all assets are transferred to realisation account at

a) Book Value

b) Market Value

c) Cost value

d) None of the options

Answer: Book Value

 

Question: What time would be taken into consideration if equal monthly amount is drawn as drawing at the beginning of each month

a) 6.5 Month

b) 5.5 Month

c) 6 month

d) None of the options

Answer: 6.5 Month

 

Question: What balance does a partners current account has

a) Both

b) Dr. Balance

c) Cr. Balance

d) None of the options

Answer: Both

 

Question: A draws 1000 Rs. Per month on the last day of every month. If the rate of interest is 5% P.A then the total interest on drawing will be

a) Rs. 275

b) Rs. 375

c) Rs. 300

d) Rs. 225

Answer: Rs. 275

 

Question: Why is Profit and Loss Adjustment Account prepared

a) To record those transaction and errors which were left while preparing the final accounts

b) To record those transaction which were left while preparing the revaluation A/c

c) To record those transaction which were left while preparing the Capital A/c

d) None of the options

Answer: To record those transaction and errors which were left while preparing the final accounts

 

Question: Give circumstances under which the fixed capitals of partners may change

a) Both

b) When fresh capital is introduced by the partner

c) When a part of capital is withdrawn by the partner

d) None of the options

Answer: Both

 

Question: In the absence of any information regarding the acquisition of share in profit of the retiring/deceased partner by the remaining partners, it is assumed that they acquire his/her share

a) Old profit sharing ratio

b) New profit sharing ratio

c) Gaining Ratio

d) None of the options

Answer: Old profit sharing ratio

 

Question: On retirement/death of a partner, the retiring/deceased partners capital account will be credited with

a) His/her share of goodwill

b) Goodwill of the firm

c) Shares of goodwill of remaining partners

d) None of the options

Answer: His/her share of goodwill

 

Question: Gobind, Hari and Pratap are partners. On retirement of Gobind, the goodwill already appears in the Balance Sheet at T 24,000. The goodwill will be written off

a) By debiting all partners capital accounts in their old profit sharing ratio

b) By debiting remaining partners capital accounts in their new profit sharing ratio

c) By debiting retiring partners capital accounts from his share of goodwill

d) None of the options

Answer: By debiting all partners capital accounts in their old profit sharing ratio

 

Question: Chaman, Raman and Suman are partners sharing profits in the ratio of 5:3:2. Raman retires, the new profit sharing ratio between Chaman and Suman will be 1:1. The goodwill of the firm is valued at Rs. 1,00,000 Ramans share of goodwill will be adjusted

a) By debiting only Sumans Capital Account with Rs. 30,000.

b) By debiting Chamans Capital account and Sumans Capital Account with Rs 15,000 each.

c) By debiting Chamans Capital account and Sumans Capital Account with Rs. 21,429 and 8,571 respectively.

d) None of the options

Answer: By debiting only Sumans Capital Account with Rs. 30,000.

 

Question: On retirement/death of a partner, the remaining partner(s) who have gained due to change in profit sharing ratio should compensate the

a) Remaining partners (who have sacrificed) as well as retiring partners.

b) Retiring partners only.

c) Remaining partners only (who have sacrificed).

d) None of the options

Answer:  Remaining partners (who have sacrificed) as well as retiring partners.

 

Question: _______ is prepared at the time of dissolution :

a) Revaluation Account

b) Profit & Loss Account

c) Profit and Loss Appropriation Account

d) Realisation Account

Answer: D

 

Question: While transferring assets to realisation account is omitted to be transferred:

a) Patents

b) Goodwill

c) Cash

d) Investments

Answer: C

 

Question: If total assets are Rs.2,00,000; total liabilities are Rs.40,000; amount realised on sale of assets is Rs. 1,75,000 and realisation expenses are Rs.3,000, the profit or loss on realisation will be :

a) Profit Rs. 12,000

b) Loss Rs.68,000

c) Loss Rs.28,000

d) Loss Rs.25,000

Answer: C

 

Question: In which condition a partnership firm is deemed to be dissolved?

a) On a partner’s admission

b) On retirement of a partner

c) On expiry of the period of partnership

d) On loss in partnership

Answer: C

 

Question: A partnership firm is compulsorily dissolved) :

a) When the business of the firm is declared illegal

b) When a partner of the firm dies

c) When a partner of the firm becomes insolvent

d) When a partner transfers his share to some other person without the consent of other partners

Answer: A

 

Question: At the time of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :

a) Realisation Account

b) Creditor’s Account

c) Partner’s Capital Account

d) Profit & Loss Account

Answer: C

 

Question: On dissolution, goodwill account is transferred to) :

a) In the Capital Accounts of Partners

b) On the credit of Cash Account

c) On the Debit of Realisation Account

d) On the Credit of Realisation Account

Answer: C

 

Question: On dissolution, the balance of a partner’s capital account appearing on the assets side of a balance sheet is transferred to :

a) On the Debit of Realisation Account

b) On the Credit of Realisation Account

c) On the Debit of Partner’s Capital Account

d) On the Credit of Cash Account

Answer: C

 

Question: On dissolution, partner’s loan is transferred to :

a) Partner’s Capital Account

b) Realisation Account

c) Partner’s Loan Account

d) Revaluation Account

Answer: C

 

Question: Sundry Creditors amounted to Rs.8,000. These were paid at a discount of 5%.

Realisation account will be debited by

a) Rs.8,000

b) Rs.7,600

c) Rs.400

d) Rs. 8,400

Answer: B

 

Question: On dissolution of a firm, a partner took over Rs. 17,000 investments for Rs. 14,000. Which one of the following account will be debited/credited with how much amount?

a) Partner’s Capital Account Debit with Rs. 14,000

b) Partner’s Capital Account Credit with Rs. 17,000

c) Realisation Account Credit with Rs. 17,000

d) Realisation Account Credit with Rs.3,000

Answer: A

 

Question: On dissolution of firm, which item is debited to the realisation account?:

a) Realisation expenses paid by partner

b) Balance of reserve fund

c) Amount of unrecorded asset

d) Creditor’s balance shown in the Balance Sheet

Answer: A

 

Question: At the time of dissolution of a firm, Creditors are Rs. 70,000; Partners’ capital is Rs. 1,20,000; Cash Balance is Rs. 10,000. Other assets realised Rs. 1,50,000. Profit/Loss in the realisation account will be :

a) Rs.60,000 (Loss)

b) Rs.80,000 (Profit)

c) Rs.40,000 (Loss)

d) Rs.30,000 (Loss)

Answer: D

 

Question: On firm's Dissolution, Patents realised at Rs. 40,000. State which account will be credited.

a) Cash A/c

b) Realisation A/c

c) Profit and Loss A/c

d) Patents A/c

Answer: B

 

Question: At the time of dissolution^ partner gives his personal asset to firm's creditor in settlement, the account credited will be

a) Realisation A/c.

b) Partner's Capital A/c.

c) Cash A/c.

d) Creditor's A/c.

Answer: B

 

Question: On dissolution of a firm, an unrecorded furniture of Rs. 5,000 was taken by a partner for Rs. 4,300 against payment. Which Account will be credited and by how much amount?

a) Cash Account by Rs. 4,300.

b) Realisation Account by Rs.700.

c) Partner's Capital Account by Rs. 5,000.

d) Realisation Account by Rs. 4,300.

Answer: D

 

Question: A firm is dissolved, Param, a partner is to carry out dissolution for which he will get Rs. 5,000, including expenses. Realisation Expenses were Rs. 2,500. Realisation Account will be debited by

a) Rs. 5,000.

b) Rs. 2,500.

c) Rs. 7,500.

d) None of these.

Answer: A

 

Question: A firm is dissolved, Raman, a partner is to carry out dissolution for which he will get Rs. 50,000, including expenses. Realisation Expenses were Rs. 25,000, which were paid by the firm. Realisation Account will be debited by

a) Rs. 50,000.

b) Rs. 25,000.

c) Rs. 75,000.

d) None of these.

Answer: A

 

Question: How much amount will be paid to Creditors for Rs.25,000 if Rs.5,000 of the creditors are not to be paid and the remaining creditors agreed to accept 5% less amount?

a) Rs. 18,750

b) Rs. 19,000

c) Rs. 19,750

d) Rs.20,000

Answer: B

 

Question: P, a partner, is to bear all expenses of realisation for which he is to be paid Rs.2,000. P had to pay realisation expenses of Rs.2,500. How much amount will be debited to Realisation Account?

a) Rs.500

b) Rs.2,500

c) Rs.4,500

d) Rs.2,000

Answer: D

 

Question: Which of the following is not transferred to Realisation Account:

a) Balance of Cash Account

b) Balance of Reserves

c) Balance of Profit & Loss Account

d) All of the Above

Answer: D

 

Question: On taking responsibility of payment of a liability of Rs.50,000 by a partner, the account credited will be :

a) Realisation Account

b) Cash Account

c) Capital Account of the Partner

d) Liability Account

Answer: C

 

Question: Cash balance shown in the Balance Sheet is shown on dissolution of firm in :

a) Realisation Account

b) Cash Account

c) Capital Account

d) None of the Account

Answer: B

 

Question: At time of dissolution of partnership firm, the balance of profit and loss account shown in the assets side of Balance sheet of the firm is transferred to:

a) Realisation Account

b) Cash Account

c) Capital Accounts of partners

d) Loan Accounts of partners

Answer: C

 

Question: At the time of dissolution of partnership firm, the amount of ‘Bills Payable’ shown in the liability side of Balance Sheet is transferred to :

a) Capital Accounts of Partners

b) Realisation Account

c) Cash Account

d) Loan Account of Partners

Answer: B

 

Question: On dissolution, the final balance of capital accounts are transferred to :

a) Realisation Account

b) Cash Account

c) Profit & Loss Account

d) Loan Accounts of Partners

Answer: B

 

Question: On dissolution of the firm, amount received from sale of unrecorded asset is credited to :

a) Partner’s Capital Accounts

b) Profit and Loss Account

c) Realisation Account

d) Cash Account

Answer: C

 

Question: Realisation A/c is a :

a) Nominal A/c

b) Real A/c

c) Personal A/c

d) Real A/c as well as Personal A/c

Answer: A

 

Question: In the event of dissolution of firm, the partner’s personal assets are first used for payment of the :

a) Firm’s liabilities

b) The personal liabilites

c) None of the two

d) Any of the two

Answer: B

 

Question: On dissolution, when a partner takes over an asset _____ Is debited

a) Realisation Account

b) Partner’s Capital Account

c) Cash Account

d) Asset Account

Answer: B

 

Question: In case of dissolution, assets are transferred to Realisation Account:

a) At Book Value

b) At Market Value

c) Cost or Market Value, whichever is lower

d) None of the Above

Answer: A

 

Question: On dissolution of a firm, bank overdraft is transferred to

a) Realisation account

b) Partners capital account

c) Bank account

d) None of the options

Answer: Realisation account

 

Question: On dissolution of a firm, partners loan account is transferred to

a) None of the options

b) Partners current account

c) Realisation account

d) Partners capital account

Answer: None of the options

 

Question: After transferring liabilities like creditors and bills payables in the realisation account, in the absence of any information regarding then payment, such liabilities are treated as

a) Fully paid

b) Partly paid

c) Never Paid

d) None of the options

Answer: Fully paid

 

Question: Unrecorded assets when taken over by a partner are shown in

a) Credit of realisation account

b) Debit of realisation account

c) Debit of bank account

d) All of the options

Answer: Credit of realisation account

 

Question: Unrecorded liabilities when paid are shown in

a) Debit of realisation account

b) Credit of realisation account

c) Debit of bank account

d) Credit of bank account

Answer: Debit of realisation account

 

Question: The accumulated profits reserves are transferred to

a) Partners capital account

b) Realisation account

c) Bank account

d) None of the options

Answer: Partners capital account

 

Question: On dissolution of the firm, partners capital accounts are closed through

a) Bank account

b) Drawings account

c) Realisation account

d) Partners capital account

Answer: Bank account

 

Question: On dissolution, how will you deal with partners loan if it appears on the assets side of the balance sheet

a) Transferred to the concerned partners capital account

b) Transferred to the Revaluation account

c) Transferred to the Bank account

d) None of the options

Answer: Transferred to the concerned partners capital account

 

Question: On dissolution of a firm, In order to record the sale of assets and discharge of liabilities, a nominal account is opened named

a) Realisation account

b) Profit & loss A/c

c) Profit & loss adjustment A/c

d) None of the options

Answer: Realisation account

 

Question: Which are the important objectives of preparing realisation account

a) All of the options

b) To close all the books of account

c) To record transactions relating to the sale of assets and discharge of liabilities

d) To determine profit or loss due to the realisation of assets and liabilities

Answer: All of the options 

 

Question: On dissolution of the firm , any surplus remaining after discharging all liabilities and payment to partners for their capital balances is

a) Distributed to partners in their profit sharing ratio

b) Distributed to partners in Equally

c) Distributed to partners in their Capital ratio

d) None of the options

Answer: Distributed to partners in their profit sharing ratio

 

Question: W, X, Y and Z are equal partners, W, X and Z died together in plane crash, this accidents results in

a) Dissolution of partnership as well as firm

b) Dissolution of partnership

c) Dissolution of firm

d) None of the options

Answer: Dissolution of partnership as well as firm

 

Question: Profit and loss appropriation A/c is prepared to

a) Find out divisible profit

b) Create reverse fund

c) Find out net profit

d) None of the options

Answer: Find out divisible profit

 

Question: Which of the following is an appropriation of profit

a) Interest on capital

b) Interest on Loan

c) Salary

d) Rent

Answer: Interest on capital

 

Question: When drawings are made at the end of every month of certain amount, then interest will be calculated on total drawings for

a) 5.5

b) 6 month

c) 6.5

d) None of the options

Answer: 5.5

 

Question: For the firm interest on drawing is

a) Gain

b) Expense

c) Loss

d) None of the options

Answer: Gain

 

Question: In the absence of partnership deed, Partners are not entitled to receive

a) All of the options

b) Salaries

c) Commission

d) Interest on capital

Answer: All of the options

 

Question: If a fixed amount is withdrawn on the first day of every Quarter the interest on total drawing will be calculated for

a) 7.5 Month

b) 5.5

c) 6 month

d) 6.5

Answer: 7.5 Month

 

Question: Anukalp and Karan are partners with the capital of Rs. 25000 and 15000 respectively, Interest payable on capital is 10% P.A, find the Interest on capital for both the partners when the profits earned by the firm is Rs 2400

a) 1500 and 900

b) 2500 and 1500

c) 1200 and 1500

d) None of the options

Answer: 1500 and 900

 

Question: Features of a partnership firm are

a) All of the options

b) 2 or more person

c) Sharing profit and losses in agreed ratio

d) None of the options

Answer: All of the options

 

Question: In realisation account, sale of assets is recorded at their

a) Realised value.

b) Cost Value

c) Book Value

d) None of the options

Answer: Realised value.

 

Question: When assets are realised at more than their book value.

a) Profit arises

b) Loss Arise

c) Both

d) None of the options

Answer: Profit arises

 

Question: A firm is compulsorily dissolved when partners become insolvent.

a) Both

b) All Partners

c) Except One Partner

d) None of the options

Answer: Both

 

Question: Fluctuating Capital A/c is credited with

a) All of the options

b) Interest on Capital

c) Profit of the year

d) Remuneration A/c

Answer: All of the options

 

Question: Interest on Partners capital A/c is

a) An appropriation A/c

b) Expense

c) Gain

d) None of the options

Answer: An appropriation A/c

 

Question: Calculate the interest on drawing @ 12% for Gambhir if he withdrew 2000 Rs. Once at the beginning of each month

a) 1560

b) 1500

c) 1200

d) 1000

Answer: 1560

 

Question: Interest on drawings of the partner is a

a) Profit to business

b) Loss to Business

c) Profit to partner

d) None of the options

Answer: Profit to business

 

Question: Calculate on interest on drawing @ 12% p.a for Abhishek if he withdraw Rs. 2000 once in month

a) 1440

b) 1220

c) 1320

d) 1300

Answer: 1440

 

Question: Current A/c is

a) Personal A/c

b) Real A/c

c) Capital A/c

d) Nominal A/c

Answer: Personal A/c

 

Question: The current A/c of partners will always have

a) Either of the Two

b) Dr. Balance

c) Cr. Balance

d) None of the options

Answer: Either of the Two

 

Question: An unrecorded asset was valued at Rs. 1,00,000. On firm’s dissolution, it was sold for 52%. Realisation account will be credited with :

a) Rs.52,000

b) Rs.48,000

c) Rs. 1,00,000

d) None of the Above

Answer: A

 

Question: On firm’s dissolution, a partner undertook firm’s creditors at Rs. 17,000. In this case the account will be credited :

a) Creditors A/c

b) Cash A/c

c) Realisation A/c

d) Partner’s Capital A/c

Answer: D

 

Question: On dissolution, losses are first of all met:

a) Out of Capital

b) Out of Profits

c) Out of private assets of partners

d) Out of loan from Bank

Answer: B

 

Question: Unrecorded liability, when paid on dissolution of a firm is debited to :

a) Partner’s Capital A/cs

b) Realisation A/c

c) Liabilities A/c

d) Asset A/c

Answer: B

 

Question: On dissolution of a partnership firm, profit or loss on realisation is distributed among the partners

a) In capital ratio

b) In Profit sharing ratio

c) Equally

d) None of the above

Answer: B

 

Question: Change in the existing agreement between the partners is called :

a) Dissolution of Firm

b) Dissolution of Partnership

c) Dissolution of Business

d) All of the Above

Answer: B

 

Question: On dissolution, the balance of ‘Profit & Loss Account’ appearing on the assets side of a Balance Sheet is transferred to :

a) On the debit of Realisation Account

b) On the credit of Realisation Account

c) On the debit of Partner’s Capital Accounts

d) On the credit of Partner’s Capital Accounts

Answer: C

 

Question: In the event of dissolution of a partnership firm, the provision for doubtful debts is transferred to :

a) Realisation Account

b) Partners Capital Accounts

c) Sundry Debtors Account

d) None of the above

Answer: A

 

Question: On dissolution, if a partner undertakes to make payment of a liability of the firm is debited)

a) Profit & Loss Account

b) Realisation Account

c) Partner’s Capital Account

d) Cash Account

Answer: B

 

Question: At the time of dissolution of partnership firm, fictitious assets are transferred to :

a) Capital Accounts of Partners

b) Realisation Account

c) Cash Account

d) Partners’ Loan Account

Answer: A

 

Question: On dissolution, when a partner takes over an unrecorded asset, ______ is credited :

a) Capital Account of the Partner

b) Cash Account

c) Asset Account

d) Realisation Account

Answer: D

 

Question: There was an Unrecorded asset of Rs.2,000 which was taken over by a partner at Rs. 1,500. Partner’s Capital Account will be debited by ............

a) Rs.2,000

b) Rs. 1,500

c) Rs.500

d) Rs.3,500

Answer: B

 

Question: On dissolution of a firm, debtors were Rs. 17,000. Of these Rs.500 became bad and the rest realised 60%. Which account will be debited and by how much amount?

a) Realisation Account by Rs. 16,500

b) Profit & Loss Account by Rs.500

c) Cash Account by Rs.9,900

d) Debtors Account by Rs.7,100

Answer: C

 

Question: In the Balance Sheet Total Debtors appear at Rs.50,000 and Provision for Doubtful Debts appear at Rs. 1,500. How much amount will be realised from Debtors, if bad debts amount to X 10,000 and remaining debtors are realised at a discount of 5%

a) Rs.38,000

b) Rs.36,500

c) Rs.36,575

d) Rs.39,500

Answer: A

 

Question: How much amount will be paid to A, if his opening capital is Rs.2,00,000 and his share of realisation profit amounts to Rs. 10,000 and he has taken over assets valuing Rs.25,000 from the firm?

a) Rs.2,35,000

b) Rs. 1,65,000

c) Rs.2,15,000

d) Rs. 1,85,000

Answer: D

 

Question: If total assets of a firm are Rs. 12,00,000 and total liabilities are Rs.2,40,000, what will be the capitals of P, Q and R if they share profits in the ratio of their capitals and profit sharing ratio is 1 : 2 : 3 :

a) P Rs.4,80,000; Q Rs.3,20,000; R Rs. 1,60,000

b) P Rs. 1,60,000; Q Rs.3,20,000; R Rs.4,80,000

c) P Rs.2,00,000; Q Rs.4,00,000; R Rs.6,00,000

d) P Rs.6,00,000; Q Rs.4,00,000; R Rs.2,00,000

Answer: B

 

Question: On dissolution of a firm, a partner’s capital account has a credit balance of Rs.42,000. His share of profit in realisation account is Rs. 9,000. He has paid firm’s realisation expenses Rs.3,000. He will finally get a payment of:

a) Rs.39,000

b) Rs.42,000

c) Rs.54,000

d) Rs.48,000

Answer: C

 

Question: On dissolution of a firm, debtors Rs. 17,000 were shown in the Balance Sheet. Out of this Rs.2,000 became bad. One debtor became insolvent. 70% were recovered from him out of Rs.5,000. Full amount was recovered from the balance debtors. On account of this item, loss in realisation account will be :

a) Rs.5,100

b) Rs. 1,500

c) Rs.3,500

d) Rs.2,000

Answer: C

 

Question: X, Yand Z are partners in a firm in the ratio of 4 : 3 : 2. On firm’s dissolution, firm’s total assets are Rs.70,000, creditors are Rs. 15,000. Realisation expenses are Rs.2,100. Assets realised 15% more than the book-value. Creditors were paid 2% more. For profit/loss on realisation, Fs capital account will be debited/credited with :

a) Credit Rs.8,100

b) Credit Rs.2,700

c) Debit Rs.2,700

d) Debit Rs.2,400

Answer: B

 

Question: Anu, Bina and Charan are partners. The firm had given a loan of Rs.20,000 to Bina. On the event of dissolution, the loan will be settled by :

a) Transferring it to debit side of Realization Account.

b) Transferring it to credit side of Realization Account.

c) Transferring it to debit side of Bina’s Capital Account.

d) Bina paying Anu and Charan privately.

Answer: C

 

Question: At the time of dissolution of firm, at what stage the balances of Partners' Capital Accounts are paid?

a) After Payment of Outsiders' Liabilities

b) Before payment of loan by partner

c) After payment of Outsiders' Liabilities and Partner's Loan

d) Before payment of Outside Liabilities.

Answer: C

 

Question: On dissolution, if a partner pays firm's liability which ofthe following account is debited?

a) Profit and Loss Account

b) Realisation Account.

c) Partner's Capital Account

d) Cash Account

Answer: B

 

Question: Which of the following is transferred to Realisation Account?

a) Balance of Cash Account

b) Balance of Reserves

c) Balance of Profit and Loss Account

d) Patents Account

Answer: D

 

Question: In the Balance Sheet, Debtors exist at Rs. 50,000 and Provision for Doubtful Debts at Rs. 1,500. How much amount will be realised from Debtors, if bad debts are Rs. 10,000 and remaining debtors are realised at a discount of 5%?

a) Rs. 38,000

b) Rs. 36,500

c) Rs. 36,575

d) Rs. 39,500

Answer: A

 

Question: P, a partner, is to bear realisation expenses for which he is to be paid Rs. 2,000. P had to pay realisation expenses of Rs. 2,500. How much amount will be debited to Realisation Account?

a) Rs. 500

b) Rs. 2,500

c) Rs. 4,500

d) Rs. 2,000

Answer: D

 

Question: Investments of Rs. 2,00,000 were not shown in the books. One of the creditors took these investments in settlement of his debt of Rs. 2,20,000. How much amount will be payable to that creditor?

a) Rs. 20,000

b) Rs. 2,20,000

c) Rs. 4,20,000

d) Nil

Answer: D

 

Question: A firm is dissolved, Pawan, a partner is to carry out dissolution. Rs. 50,000 is fixed as his remuneration. Realisation Expenses were Rs. 25,000, which were paid by Pawan. Pawan's Capital Account will be credited by

a) Rs. 50,000.

b) Rs. 75,000.

c) Rs. 25,000.

d) Rs. 1,00,000.

Answer: B

 

Question: Profit or loss of realisation account is transferred to :

a) Profit & Loss Account

b) Capital Accounts of Partners

c) Balance Sheet

d) None of the Above

Answer: B

 

Question: Which of the following is transferred to Realisation Account :

a) Balance of Cash Account

b) Balance of Profit & Loss Account

c) Amount realised on sale of assets

d) Reserves

Answer: C

Part 1 Chapter 01 Accounting for Not for Profit Organisation
CBSE Class 12 Accountancy Accounting for Not for Profit Organisation MCQs
Part 1 Chapter 03 Reconstitution of a Partnership Firm Admission of a Partner
CBSE Class 12 Accountancy Admission Of A Partner MCQs
CBSE Class 12 Accountancy Reconstitution Of Firm MCQs
Part 1 Chapter 04 Reconstitution of a Partnership Firm Retirement Death of a Partner
CBSE Class 12 Accountancy Retirement or Death of a Partner MCQs
Part 2 Chapter 04 Analysis of Financial Statements
CBSE Class 12 Accountancy Analysis of Financial Statement and Tools MCQs

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