NCERT MOST IMPORTANT QUESTIONS CLASS – 12 | ACCOUNTANCY PART 2 IMPORTANT QUESTIONS | CHAPTER – 5 | DISSOLUTION OF PARTNERSHIP FIRM | EDUGROWN |

In This Post we are  providing Chapter- 5 DISSOLUTION OF PARTNERSHIP FIRM NCERT MOST IMPORTANT QUESTIONS for Class 12 ACCOUNTANCY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON DISSOLUTION OF PARTNERSHIP FIRM

1. What is Dissolution

 Dissolution means discontinuance of existing relationship among the partners. According to Indian Partnership Act, 1932, dissolution may be either of partnership or of a firm.

2.What is Dissolution of Partnership 

It changes the existing relationship between partners but the firm may continue its business as before.

3.What is Dissolution of Partnership Firm 

Dissolution of firm means dissolution of partnership among all the partners in the firm. In this case, business of the firm also comes to an end.

4.what are Modes of Dissolution of Partnership Firm

(i) Dissolution by mutual agreement                       (ii) Compulsory dissolution
(iii) Dissolution on the happening of an event         (iv) Dissolution by notice
(v) Dissolution by court

5.Settlement of Accounts in Case of Dissolution of Firm

(i)Treatment of Losses
Losses shall be paid, first out of profits, then out of partners’ capital and lastly, by the partners individually in their profit sharing ratio, if necessary.
(ii)Application of Assets
(a)Payment to outsiders/creditors
(b)Loans and advances of partners
(c)Payment of capital of partners
(d)The balance shall be divided among the partners in their profit sharing ratio

6.Hanif and Jubed were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013 their balance sheet was as follows

On the above date the firm was dissolved
(i)Debtors were realised at a discount of 5%, 50% of the stock was taken over by Hanif at 10% less than the book value. Remaining stock was sold for Rs 65,000.
(ii)Furniture was taken over by Jubed for Rs 1,35,000. Machinery was sold as scrap for Rs 74,000.
(iii)Creditors were paid in full.
(iv)Expenses on realisation Rs 8,000 were paid by Hanif. Prepare realisation account. (All India 2014)
Ans.

7.Shanti and Satya were partners in a firm sharing profits in the ratio of 4:1. On 31st March, 2013 their balance sheet was as follows:

On the above date the firm was dissolved
(i)Shanti took over 40% of the stock at 10% less than its book value and the remaining stock was sold for Rs 40,000. Furniture realised Rs 80,000.
(ii)All unrecorded investment was sold for Rs 20,000. Machinery was sold at a loss of Rs 60,000.
(iii) Debtors realised Rs 55,000.
(iv) There was an outstanding bill for repairs for which Rs 19,000 were paid. Prepare realisation account.    (Delhi 2014)
Ans.

8.Verma and Sharma were partners sharing profits in the ratio of 3 : 1. On 31st March, 2011, their balance sheet was as follows:

The firm was dissolved on 1st April, 2011 and the assets and liabilities were settled as follows:
(i)Creditors of Rs 50,000 took over land and building in full settlement of their claim.
(ii)Remaining creditors were paid in cash.
(iii)Machinery was sold at a depreciation of 30%.
(iv)Debtors were collected at a cost of Rs 500.
(v)Expenses on realisation were Rs 1,700. Pass necessary journal entries for dissolution of the firm.  (Delhi 2012)
Ans.

9.A and B were partners in a firm sharing profits in the ratio of 3 : 2. On 31st March, 2011, the balance sheet of the firm was as follows:

The firm was dissolved on 1st April, 2011 and the assets and liabilities were settled as follows:
(i)Building was taken over by creditors as their full and final payment.
(ii)Furniture was taken over by B for cash payment at 5% less than the book value.
(iii)Debtors were collected by a debt collection agency at a cost of Rs 5,000.
(iv)Stock realised Rs 70,500.
(v)B agreed to bear all realisation expenses. For this service, B is paid Rs 500. Actual expense on realisation amounted to Rs 1,000.Pass necessary journal entries for dissolution of the firm.(Delhi 2012)
Ans.

10.Sanjay and Sameer were partners in a firm sharing profits in the ratio of 2 : On 31st March, 2011 the balance sheet of the firm was as follows:

The firm was dissolved on 1st April, 2011 and the assets and liabilities were settled as follows:
(i)Sanjay agrees to take over land and building at Rs 3,50,000 by paying cash.
(ii)Stock was sold for Rs 90,000.
(iii)Creditors accepted debtors in full settlement of their claim. Pass necessary journal entries for dissolution of the firm.(All India 2012)
Ans.