(B) Loss ₹68,000 (B) In Profit sharing ratio (C) After making the payment of above (A) and (B) (b) Factors affecting the value of goodwill. (A) Out of Capital (B) ₹48,000 At the time of dissolution of firm, “Loan of partners” (Loans given by partners to the firm) is paid out of the amount realised on sale of assets : Concept of goodwill and mode of valuation. 18. The amount realized for goodwill if any, is credited to realization account. (C) ₹4,500 (A) Realisation Account Assets and Liabilities are transferred to Realisation account. (B) Realisation Account (A) Realisation Account On dissolution of a firm, debtors ₹17,000 were shown in the Balance Sheet. (A) Realisation Account (D) P ₹6,00,000; Q ₹4,00,000; R ₹2,00,000, 60. The expenses of realisation amount to Rs 600. (B) Transferring it to credit side of Realization Account. Debiting the dissolution expenses of the firm. (B) Profit & Loss Account (C) Capital Account of the Partne (B) Cash Account Accumulated Profit /Loss are transferred to Partner’s Capital Account in case of dissolution in their. (D) Realisation Account (Debit), 27. (C) ₹19,750 (A) ₹5,40,000 Which of the following is transferred to Realisation Account: On dissolution of firm, loss calculate in realisation account is debited/credited to which account? (C) Partners’ Capital Accounts (Credit) (C) Sundry Debtors Account The assets realized Rs 1, 30,000 net. Realization Account is a nominal account prepared for the purpose of calculating and distributing the profit/loss arising out of realization of assets and repayment of liabilities, at the time of dissolution of a partnership firm. (A) Capital Account of the Partner (D) Reserves, 29. (A) Credit ₹8,100 (D) ₹2,000, 65. (C) Realisation Account (D) Outside Creditors, 5. (A) Partner’s Capital Accounts (D) Bina paying Anu and Charan privately. The remaining debtors realise 50% of book value. (C) Continued future profits are expected The student can see for himself that the above illustration can also be treated as a case of retirement, especially if the same books are continued. On dissolution of a firm, an unrecorded furniture of the value of ₹5,000 was taken up by a partner for ₹4,300. (B) Partners’ Capital Accoimts (Debit) The amount left unsatisfied or unpaid by the insolvent partner has to be transferred to the capital accounts of the other partners in the ratio of their capitals just before the dissolution. 1,500. We transfer this balance to the Capital Accounts of the Partners in their profit-sharing ratio. These were paid at a discount of 5%. (D) ₹20,000, 54. (A) Capital Accounts of Partners Its assets were realised at 12% less. Prepare Stock Account and Machinery & Plant Account yourself. Which account will be debited and by how much amount? (D) ₹3,600, 34. Bank Loan Rs.12,000 was paid. On taking responsibility of payment of realisation expenses by a partner, the account credited will be : They accepted Building valued Rs 1,40,000 and paid cash to the firm Rs 40,000; Aman an old customer whose account of Rs 1000 was written off as bad in the previous B. If you have any query regarding CBSE Class 12 Accountancy Dissolution of a Partnership Firm MCQs Pdf, drop a comment below and we will get back to you at the earliest. Pass necessary Journal entries for the following transactions on the dissolution of the firm of P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account. (C) P ₹2,00,000; Q ₹4,00,000; R ₹6,00,000 (D) Revaluation Account, 40. On dissolution of a firm, a partner took-over the investments of ₹15,000 at ₹19,000. On dissolution of a firm, debtors were ₹17,000. For profit/loss on realisation, Fs capital account will be debited/credited with : (C) ₹12,000 (A) Realisation Account Sale of Goodwill after dissolution.- 1) In settling the accounts of a firm after dissolution , the goodwill shall, subject to contract between the partners, be included in the assets , and it may be sold either separately or along with other property of the firm. (B) On retirement of a partner (A) Dissolution of Firm (C) Asset Account A, B and C, sharing profits in the proportion of 3 : 2 : 1 respectively, agree upon dissolution of their partnership firm on 31st March, 2012 on which date their balance sheet is as under: The life policy is surrendered for Rs 12,000. (D) Real A/c as well as Personal A/c, 14. B and C continue to share profits and losses in the same proportion as heretofore. (D) ₹2,000, 55. (B) ₹19,000 (D) Before the payment of loans given by third party. Out of this ₹2,000 became bad. There is no need to give a special treatment to goodwill in case of dissolution. (A) Realisation expenses paid by partnert Profit on realisation of assets was ₹7,800. paid 2% more. (B) ₹4,20,000 Image Guidelines 5. This document is highly rated by Class 12 students and has been viewed 713 times. On dissolution of firm, which item is debited to the realisation account? (D) Loss ₹25,000, 51. (D) ₹1,85,000, 56. On dissolution of a firm, Bank overdraft is transferred to:- A. C. Realisation A/C B. (B) Partner’s Capital Accounts In the latter procedure, creditors are paid by the cash available with the firm including the partners individual contribution. (A) Realisation Account (D) Cash Account, 13. (A) ₹60,000 (Loss) (C) Capital Account current account in case od capital f fixe system or to partners’ capital account when capitals are fluctuating. Question 2. (D) Loan Accounts of Partners, 22. Realisation account will be debited by On dissolution, goodwill account is transferred to) (A) In the Capital Accounts of Partner (B) On the credit of Cash Account (C) On the Debit of Realisation Account (D) On the Credit of Realisation Account. (A) ₹69,200 X, Yand Z are partners in a firm in the ratio of 4 : 3 : 2. (D) All of the Above, 30. …………… is prepared at the time of dissolution : Dissolution of Partnership Accounting – Treatment of Goodwill on Dissolution (Type 2) Question 15 : – (C) ₹500 (B) On the Credit of Realisation Account (D) Debtors Account by ₹7,100, 52. Partner's capital A/c B. (A) On a partner’s admission On dissolution of a firm, its Balance Sheet revealed total creditors ₹50,000; Total Capital ₹48,000; Cash Balance ₹3,000. On dissolution, the balance of ‘Profit & Loss Account’ appearing on the assets side of a Balance Sheet is transferred to : (B) Profit and Loss Account (C) ₹2,15,000 (D) ₹48,000, 61. (D) Cash Account, 10. 60,000 was paid. (D) Loan Account of Partners, 21. 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: Which account will be debited? On firm’s dissolution, on realisation of goodwill (which was shown in Balance Sheet) will be credited to : (A) Revaluation Account Realisation A/c is a : (A) Some partner has become fully mad Report a Violation, When All Partners are Insolvent (Dissolution of Partnership Firm), Steps to Close the Books of Accounts (Dissolution of Partnership Firm). On the assets side of the Balance Sheet items were shown preliminary expenses ₹2,000; Profit & Loss Account (Debit) Balance ₹4,000 and Cash Balance ₹1,800. (A) Profit & Loss Account In the event of dissolution of a partnership firm, the provision for doubtful debts is transferred to : P had to pay realisation expenses of ₹2,500. (B) When a partner of the firm dies (B) ₹76,800 Credit side of cash A/C 13 How much amount will be paid to A, if his opening capital is ₹2,00,000 and his share of realisation profit amounts to ₹10,000 and he has taken over assets valuing ₹25,000 from the firm? Plagiarism Prevention 4. • Admission of manager as a Partner is excluded from the topic of past adjustments. On sale, the amount actually received will be debited to Cash Account or Bank and credited to Realisation Account. (C) Partner’s Loan Account Which Account will be credited and by how much amount? Goodwill. (C) After making the payment to third party for their loans as well as partners loans A partnership firm is compulsorily dissolved : (C) Debit ₹2,700 On dissolution of a firm, partner’s loan account is transferred to (a) realisation account (b) partner’s capital account (c) partner’s current account (d) None of these Answer (d) None of these. 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