MCQs on Dissolution of Partnership Firm (Part-3) From Q-41 to Q - 60, MCQs on Dissolution of Partnership Firm

 MCQs on Dissolution of Partnership Firm 

 MCQs on Dissolution of Partnership firm (Video) 👈👈

41. The process of disposing off the assets and paying off the liabilities is called:

a.Realization     b.Disinvestment       c.reconciliation      d.None of these

 

42. If one partner become insolvent, in what ratio solvent partners bear the

deficiency?

a.New ratio is decided

b.In the ratio of their capital as it stood just before the liquidation

c.Solvent partners do not bear deficiency

d.All the above

 

43. What will be passed, for creditor's liabilities at the time of dissolution,  when all partners are insolvent?

a.Liabilities a/c debited, Cash a/c credited, Deficiency a/c credited

b.Liabilities a/c credited, Cash a/c credited, Deficiency a/c credited

c.Liabilities a/c debited, Cash a/c debited, Deficiency a/c credited

d. None of the above

 

44.A firm is unable to pay debts when:

a.Partner is insolvent

b.Partner has debit balance

c.Firm is insolvent

d.All the abovall

 

45. All the accounts are settled among partners and creditors at the time

of ……………… of a business.

a.dissolution     b.commencement     c.admission      d.retirement

 

46.First of all …………….. of the firms will be settled out of sources of the business:

a.Liabilities       b.Assets        c.Capital        d.all of these

 

47. Partners are liable to settle the account of accounts payable even from their …………….., if they are solvent.

a.Private sources       b.Capital portion       c.Profit share      d.out of salary

 

 

48. .…………. of partner will be paid off, before the settlement of partner's

capital.

a.Capital        b.Profit share        c.loan          d.salary

 

49.On dissolution partner's capital balance will be

a.paid to them rateably      b.forfeited        c.withheld     d.None of these

 

50. At the time of dissolution:

a.all the assets are transferred to realization account

b.Only current assets are transfered to realization account

c.Non-cash assets are tranferred to realization account

d.All the above must be done.

41. A      42. B       43. A       44. C.     45. A     

46. A      47. B       48. C       49. A      50. A

 

51.At the time of dissolution non-cash assets are credited with:

a.Market value       b.Book value       c.As the agreed amount among

 

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

(A) Partner’s Capital Account Debit with ₹14,000

(B) Partner’s Capital Account Credit with ₹17,000

(C) Realisation Account Credit with ₹17,000

(D) Realisation Account Credit with ₹3,000

 

53. Investments valued ₹2,00,000 were not shown in the books. One of the creditors took over these investments in full satisfaction of his debt of ₹2,20,000. How much amount will be deducted from creditors?

(A) ₹20,000      (B) ₹2,20,000     (C) ₹4,20,000      (D) ₹2,00,000

 

54. 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

 

55. Sundry Creditors amounted to 8,000. These were paid at a discount of 5%. Realisation account will be debited by

(A) ₹8,000

(B) ₹7,600

(C) ₹400

(D) ₹8,400

 

56. On firm’s dissolution, when a partner voluntarily gives his personal asset to firms’ creditor as payment, the account credited will be :

(A) Realisation A/c

(B) Partner’s Capital A/c

(C) Cash A/c

(D) None of the A/c.

 

57. Court can make an order to dissolve the firm when :

(A) Some partner has become fully mad

(B) Partnership deed is fully followed

(C) Continued future profits are expected

(D) Firm is running legal business

 

58. 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

 

59. On dissolution the partners remain liable until

(a) Partners dues are paid off

(b) The registrar strikes off the name

(c) Accounts are settled

(d) Public notice is given

 

60.On which of the following grounds, a partner may apply to the court for dissolution of the firm?

(a) Misconduct of a partner

(b) Insanity of a partner

(c) Perpetual losses in business

(d) All of the above 

 

51. C      52. A     53. A     54. B     55. B

56. B      57. A     58. C      59. D    60. D