Important Questions for Chapter 7- Dissolution of Partnership Firm

Important Questions with Answers for Class 12 CBSE Accountancy Chapter 7- Dissolution of Partnership Firm which is outlined by expert Accountancy teachers from the latest version of CBSE (NCERT) books.

Also Check: What is Dissolution of Partnership?

CBSE Class 12 Accountancy Chapter -7 Important Questions

Question 1

What does Dissolution of Partnership Firm mean?

Answer: Dissolution of Partnership Firm means the change in the association among the partners; however, the enterprise perpetuates.

Question 2

What does Dissolution of Firm mean?

Answer: Dissolution of Firm means closure of the enterprise and end of the business association among all the partners.

Question 3

What are the modes of Dissolution of Firm?

Answer: The modes by which a Firm can be dissolved are:

  • Mutual agreement
  • Compulsory dissolution
  • By notice
  • The occurrence of an event
  • Dissolution by court

Question 4

Mention the accounting treatment on the dissolution of the firm.

Answer: Dissolution process begins by preparing the following accounts in the enterprise’s books:

  • Realisation a/c
  • Partner’s loan a/c
  • Partner’s capital a/c
  • Bank or cash a/c

Question 5

Pass the necessary journal entry ‘for closing the asset a/c’.

Answer: The journal entry passed is,

Realisation a/c Dr.

To Various assets a/c

Question 6

Pass the necessary journal entry when realisation expenses are borne and paid by the enterprise.

Answer: The journal entry passed is,

Realisation a/c Dr.

To Cash/bank a/c

Question 7

Pass the necessary journal entry when realisation expenses were to be borne by the enterprise but are paid by a partner.

Answer: The journal entry passed is,

Realisation a/c Dr.

To Concerned partner’s capital a/c

Question 8

During the dissolution of a firm, if goodwill appears in the balance sheet, it is transferred to,

Answer: Realisation a/c

Question 9

An unrecorded asset when realised is credited to,

  • Realisation a/c
  • Partners’ capital a/c
  • None of the above

Answer: Realisation a/c

Question 10

An unrecorded liabilities when paid is debited to,

  • Realisation a/c
  • Partners’ capital a/c
  • None of the above

Answer: Realisation a/c

Question 11

Pass the necessary journal entry when realisation expenses are borne and paid by the same partner.

Answer: No entry

Question 12

Pass the necessary journal entry when realisation expenses are borne by a partner and paid by the firm.

Answer: The journal entry passed is,

Concerned partner’s capital a/c Dr.

To Cash/bank a/c

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