Practice Test

Q1) In case of dissolution, assets and liabilities are transferred to ______ A/c Show Answer

Q2) Dissolution expenses are credited to _____ A/c. Show Answer

Q3) Deficiency of Insolvent partner will be suffered by solvent partners in their ________ ratio. Show Answer

Q4) If any asset is taken over by partner from firm his Capital A/c will be _______. Show Answer

Q5) If any unrecorded liability is paid on dissolution of the firm _______ account is debited. Show Answer

Q6) Partnership is compulsorily dissolved when the partners of the firm become ________. Show Answer

Q7) Assets and liabilities are transferred to Realisation Account at their _______ values. Show Answer

Q8) If the number of partners in a firm falls below two, the firm stands _______. Show Answer

Q9) Realisation Account is _______ on realisation of assets. Show Answer

Q10) All activities of the partnership firm cease (stop) on _______ of firm. Show Answer

Q11) If any liability is taken over by the partner, the _______ A/c is to be debited. Show Answer

Q12) Excess of a credit over debit in Realisation A/c indicates ______ on realisation. Show Answer

Q13) Excess of a debit over credit in Realisation A/c shows ______ on realisation. Show Answer

Q14) On payment of Realisation expenses ________ A/c is credited. Show Answer

Q15) The balance of Realisation A/c is shared by ______. Show Answer

Q16) The firm is dissolved automatically on the retirement of a partner. Show Answer

Q17) On dissolution Cash or Bank Account is closed automatically. Show Answer

Q18) On dissolution Bank overdraft is transferred to Realisation Account. Show Answer

Q19) A Solvent Partner having debit balance to his Capital Account does not share the deficiency of Insolvent Partner's Capital Account. Show Answer

Q20) At the time of dissolution of Partnership Firm all assets should be transferred to Realisation A/c. Show Answer

Q21) Debit balance of insolvent Partner's Capital A/c is known as Capital Deficiency. Show Answer

Q22) At the time of dissolution, loan from partner will be transferred to Realisation Account. Show Answer

Q23) Dissolution takes place when the relation among the partner's comes to an end. Show Answer

Q24) The insolvency loss at the time of dissolution of the firm is shared by the Solvent Partner's in their profit sharing ratio. Show Answer

Q25) Realisation loss is not transferred to insolvent Partner's Capital Account. Show Answer

Q26) If the partnership firm makes loss on one year it has to be dissolved. Show Answer

Q27) After dissolution of partnership firm, it can continue doing its normal business. Show Answer

Q28) Value of goodwill need not be found out when there is dissolution of a firm. Show Answer

Q29) If one of the partners become insolvent, the firm has to be dissolved. Show Answer

Q30) Unrecorded liabilities are also to be considered and paid on dissolution of a firm. Show Answer

Q31) When a partner takes over asset, Realisation A/c is credited. Show Answer

Q32) A Partner?s Loan is not transferred to Realisation Account. Show Answer

Q33) The realisation profit or loss is shared by the partners in their capital ratio. Show Answer

Q34) Loss on realisation is not transferred to insolvent partners capital account. Show Answer

Q35) Dissolution of partnership firm means complete closure of partnership business. Show Answer

Q36) Excess of a debit over credit in Realisation A/c indicates profit on realization. Show Answer

Q37) Excess of a credit over debit in Realisation A/c indicates profits on realization. Show Answer

Q38) On dissolution of partnership firm, all assets are transferred to the credit side of the Realisation A/c. Show Answer

Q39) On dissolution of partnership firm, external liabilities are transferred to the credit side of the Realisation A/c. Show Answer

Q40) Partnership could be dissolved because if Show Answer

Q41) On the dissolution of partnership, profit or loss on realisation of assets and liabilities should be divided among partners Show Answer

Q42) An unrecorded asset realised at the time of dissolution is credited to Show Answer

Q43) A liability taken over by a partner at the time of dissolution is credited to Show Answer

Q44) Realisation account is a Show Answer

Q45) Which of the following method/methods is adopted to ensure that distribution of cash among partners is in proportion to their interest in partnership? Show Answer