Practice Test

Q1) Dissolution of partnership between all the partners of firm is called_______ Show Answer

Q2) A firm is dissolved when________ Show Answer

Q3) A firm is dissolved when________ Show Answer

Q4) The court orders dissolution of the firm in which of the following case ? Show Answer

Q5) The court orders dissolution of the firm in which of the following case ? Show Answer

Q6) In setting the account of a firm after dissolution,losses,including deficiencies of capital,shall be paid_____ Show Answer

Q7) Upon dissolution,the firm's assets shall be first applied in________ Show Answer

Q8) Upon dissolution,the firm's assets shall be first applied in paying the debts of the firm to third parties,shall thereafter be applied in______ Show Answer

Q9) upon dissolution,the firm's assets shall be first applied in paying the bebts of the firm to third parties,shall thereafter be applied in payment of partners loan,shall then be applied in ______________ Show Answer

Q10) upon dissolution,the firm's assets sall be first applied in paying the debts of the firm to third parties,shall thereafter be applied in payment of partners loan,shall then be applied in payment of partners capiatl and still surplus remain it should used for_____ Show Answer

Q11) Upon dissolution,which is the proper order for application of the firm's assets ? Show Answer

Q12) Which of the following is prepared only at the time of dissolution of the firm ? Show Answer

Q13) Which of the following account's balance will not be transferred to realization account ? Show Answer

Q14) In which of the following account,accounting entriees are made at the book value of assets and liabilities ? Show Answer

Q15) ______rule is applicable at the time of any partner becoming insolvent. Show Answer

Q16) Garner vs Murray rule requires_______ Show Answer

Q17) In which of the following case garner vs murray rule is not applicable ? Show Answer

Q18) When the partners capital accounts are fixed,as per the decision in the Garner vs Murray case,any loss arising due to the capital deficiency in the insolvent partners capital accounts is to be borne by solvent partners in the ratio of________ Show Answer

Q19) K and A are partners ina firm.They share profits and losses in the ratio of 4:1.They decided to dissolvethe firm.K capital-Rs.1,60,000,A capital Rs.1,00,000,Total assests Rs.3,95,000,Total liabilities Rs.1,35,000.On dissolution assets realized Rs.4,25,000 & liabilities settled at Rs.1,10,000.Net ptofit or loss on realization= Show Answer

Q20) K and A are partners ina firm.They share profits and losses in the ratio of 4:1.They decided to dissolvethe firm.K capital-Rs.1,60,000,A capital Rs.1,00,000,Total assests Rs.3,95,000,Total liabilities Rs.1,35,000.On dissolution assets realized Rs.3,50,000 & liabilities including unrecorded liability setted at Rs.1,50,000.Net proft or loss on realization = Show Answer

Q21) A,B & c are partners firm.Their capital balance were:A-Rs.24,000,B-Rs.8,000,C-RS.4,000.Their current balance were:A-Rs.10,800(Cr),B-Rs.2,000(Dr),C-RS.6,000(Dr).C become insolevent and could not meet his liability to the firm so partners decided to dissolve the firm.Realization loss came to Rs.31,200.Amount to be paid/(receivable) to/from A & B on final settlement should be Rs._____&Rs._____(Apply garner vs Murray princile) Show Answer

Q22) Retirement or death of a partner. Show Answer

Q23) If all the partners, but one are insolvent it is: Show Answer

Q24) If all the partners, but one, are solvent it is : Show Answer

Q25) At the time of dissolution: Show Answer

Q26) At the time of dissolution non-cash assets are credited with: Show Answer

Q27) If a partner takes over an asset of the firm, his capital account: Show Answer

Q28) Loss on realization is: Show Answer

Q29) When all partners are insolvent creditors will be: Show Answer

Q30) The persons who have entered into a partnership business are individually called: Show Answer

Q31) The persons who have entered into a partnership business are individually called: Show Answer

Q32) If no provision is made in agreement regarding the duration of the partnership: Show Answer

Q33) A person who declares by word of mouth as partner of the firm is called: Show Answer

Q34) At the time of dissolution all the assets of firm are transferred to the realization A/c: Show Answer

Q35) Balance of realization A/c is transferred to the capital A/c of the partners in: Show Answer

Q36) The decision is Garner Vs. Murray was given in: Show Answer

Q37) The profit/loss revalued by realization account is transferred to the capital accounts of the partners in: Show Answer

Q38) What entry will be passed if a partner takes over a liability of a firm? Show Answer

Q39) At the time of realization, balance standing in the accumulated reserve is transferred to Show Answer

Q40) Return of premium on dissolution cannot be allowed if Show Answer

Q41) As per Garner v/s. Murray rule, the loss due to the insolvency of a partner is to be borne by the other partner is Show Answer

Q42) Which of the following statement is true? Show Answer

Q43) If all the partners become insolvent, then the capital accounts should be transferred to Show Answer

Q44) Realization A/c of partners at the time of dissolution is closed by Show Answer

Q45) X, Y and Z are partners sharing profits & losses equally. Their capital balances on 31st March,2013 are Rs.80,000, Rs.60,000 and Rs.40,000 respectively. Their personal assets are worth as follows:X-Rs.20,000, Y-Rs.15,000 and Z-Rs.10,000. In case of dissolution, the extent of their maximum liability in the firm would br(assuming no personal liability|) Show Answer

Q46) X, Y and Z are partners sharing profits and losses equally. Their capital balances on March 31.2012 are Rs.80,000, Rs.60,000 and Rs.40,000 respectively. Their personal assets are worth as follows:
X-Rs.20,000, Y-Rs.15,000 and Z-Rs.10,000
The extent of their liability in the firm would be: Show Answer

Q47) The capital for LLP should be Show Answer

Q48) A Court may dissolve the partnership firm on the grounds of
(i) insanity of a partner
(ii) permanent incapacity of partner
(iii) misconduct by a partner.
The options are Show Answer

Q49) On dissolution of partnership firm, X one of the partners was to receive Rs 3,000 as remuneration for the dissolution work, the entry in the books of partnership will be : Show Answer

Q50) A partner gave loan of Rs 20,000 to the firm of dissolution of the firm the net losses of the firm were Rs 30,000. How much money will the partner get on dissolution? Show Answer