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