Dissolution vs Retirement

Q. account is prepared at the time of the dissolution of the firm at the time assets are sold.

1. Revaluation
2. Realisation
3. Loan
4. Capital

Q.

Venture capital is concerned with: (1) New project having potential for a higher profit. (2) A new project of high technology (3) New project has a high risk (4) All the above.

Q.

Why do firm revaluate assets and reassess their liabilities on retirement or on the event of death of a partner?

Q. account is prepared at the time of the dissolution of the firm during the sale of assets.

1. Revaluation
2. Realisation
3. Loan
4. Capital

Q.

___liabilities are transferred to the Realisation account.

1. None of these

2. Both

3. External

4. Internal

Q.

All assets (except cash/bank and fictitious assets) are transferred to the ___ side of Realisation Account.

1. Debit

2. None of these

3. Not sure

4. Credit

Q.

All external liabilities are transferred to the ___side of Realisation account.

1. either A or B

2. None of these

3. Credit

4. Debit

Q. The idea of revaluation of asset in case of retirement was that all compensation to the retiring partner should be based on the value of assets.

1. actual
2. market
3. subsidised
4. stamp duty

Q. In case of dissolution, the assets are .

1. liquidated
2. continued
3. distributed
4. purchased

Q. ________ is a fictitious Asset.

1. Goodwill
2. Preliminary expenses A/c
3. Patents
4. Claims receivable

Q.

State the order of settlement of accounts on dissolution.

Q. The journal entry for transfer of assets is ______________________.

1. Realisation A/c Dr.
   To Assets (Individually) A/c
2. Assets (Individually) A/c Dr.
   To Realisation A/c
3. Bank A/c Dr.
   To Realisation A/c
4. Realisation A/c Dr.
   To Revaluation A/c

Q. Write the word / term / phrase, which can substitute each of the following statements.

The account which shows realisation of assets and discharge of liabilities.

Q. At the time of dissolution, is not calculated.

1. bank balance
2. cash balance
3. goodwill
4. partner's capital

Q. Residual value of an asset cannot be _____________.

1. More than $10$% of the original cost
2. More than $5$% of the original cost
3. Less than $5$% of the original cost
4. Less than $10$% of the original cost

Q. State whether the following statements are true or false :

Retiring partner’s share in profit up to the date of his retirement will be debited to profit and loss suspense account.

Q. Write the word / term / phrase, which can substitute each of the following statements.

Expenses incurred on dissolution of a firm.

Q. is the potential for the business to create future profits.

1. Capital
2. Goodwill
3. Assets
4. Reserves

Q. Research indicates that most successful entrepreneurs share certain personal attributes, including ___

1. Leadership
2. Passion
3. Self confidence
4. All of above

Q. Write the word / term / phrase, which can substitute each of the following statements.

Conversion of assets into cash on dissolution of firm.

Q. Decrease in liability at the time of retirement partner is _______________.

1. Debited to Profit & Loss A/c
2. Debited to Revaluation A/c
3. Debited to Goodwill A/c
4. Credited to Revaluation A/c

Q. Valueless assets are treated as ________________.

1. Tangible Asset
2. Intangible Asset
3. Current Asset
4. Fictitious Asset

Q. Write the word / term / phrase, which can substitute each of the following statements.

Assets which are not recorded in the books of accounts.

Q. At the time of retirement of a partner, firm gets ______ from the insurance company against the Joint Life Policy taken jointly for all the partners.

1. Policy Amount.
2. Surrender Value.
3. Policy Value for the retiring partner and Surrender Value for the rest.
4. Surrender Value for all the partners.