Process of Realisation

Q.

On dissolution of a firm, partner’s loan account is transferred to _________

1. Partners' current account

2. Bank account

3. Partners' capital account

4. Realisation account

Q.

Do we need to calculate the value of goodwill in case of dissolution of the firm?

1. No

2. Can't say

3. None of these

4. Yes

Q.

At the time of dissolution -

1. all the assets are transferred to Realisation Account

2. only current assets are transferred to Realisation Account

3. non-cash assets are transferred to Realisation Account

4. None of these

Q. State whether the following statements are True or False.

At the time of dissolution loan from partner will be transferred to Realisation Account.

Q.

On dissolution of a firm all the assets are transferred to realisation account at their which value?

Q.

If all the partners, but one are solvent it is ___________.

1. None of these

2. May or may not be cause dissolution

3. Dissolution of partnership agreement

4. Dissolution of a firm

Q. State whether the following statements are True or False.

On dissolution Bank Overdraft is transferred to Realisation Account.

Q.

After liquidating all the assets and paying off the liabilities, any credit balance in the realisation account would be credited to the _________________.

1. Bank A/c

2. Realisation A/c

3. Partners’ capital A/c

4. None of these

Q. When all the partners are insolvent, the loss shown by Realisation Account is debited to capital accounts of partners in the ________________.

1. Capital ratio
2. Profit sharing ratio
3. Equal ratio
4. Ratio laid down in ruling of Garner v. Murray

Q. At the time of dissolution, all liabilities are transferred on the credit side of realisation account.

1. False
2. True

Q. Any credit balance in the realisation account would be credited to the partners’ capital account.

1. False
2. True

Q. Accumulated profits and reserves are not shared at the time of dissolution.

1. True
2. False