Dissolution of Partnership Firm MCQ Questions Class 12 Accountancy Chapter 5
NCERT MCQ Questions for Class 12 Accountancy Chapter 5 Dissolution of Partnership Firm. Dissolution of Partnership Firm MCQ Questions with Answers from Class 12 Accountancy.
(1) According to —— the dissolution of partnership between all the partners of a firm is called dissolution of the partnership firm.
(a) Section 38, of Indian partnership Act 1932
(b) Section 39, of Indian partnership Act 1932
(c) Section 32, of Indian partnership Act 1932
(d) Section 40, of Indian Partnership Act 1932
Ans: (b) Section 39, of Indian partnership Act 1932
(2) After the dissolution of the firm, no business transaction takes place except the activities related to ———-.
(a) Profit distribution among partners
(b) Activities related to closure of business
(c) Registration of the firm
(d) Discharging of claims to the partners
Ans: (b) Activities related to closure of business
(3) Dissolution by agreement implies ——-.
(a) Firm is dissolved with consent of all partners
(b) Both (a) and (c)
(c) Firm is dissolved in accordance with contract between the partners
(d) Firm is dissolved by —— the partnership Deed
Ans: (b) Both (a) and (c)
(4) A firm has to be compulsorily dissolved in case of a partnership business when ——-.
(a) The business runs in loss
(b) Firm cannot purchase any asset
(c) The firm is engaged in illegal or unlawful activities
(d) A partners is decreased.
Ans: (c) The firm is engaged in illegal or unlawful activities.
(5) A Firm can be dissolved under the made of —–.
(a) Dissolution by notice
(b) Dissolution by court
(c) Dissolution by agreement
(d) All of these
Ans: (d) All of these
(6) The settlement of assets and liabilities incase of dissolution of a partnership firm is carried out by ——–.
(a) Selling of assets & paying the liabilities
(b) Distributing it among the partners
(c) Revaluation of assets & liabilities and low balance sheet is drawn
(d) Court’s interventions
Ans: (c) Revaluation of assets & liabilities and low balance sheet is drawn
(7) When a panther continuously commits breach of partnership agreement, dissolution of the firm happens under ———.
(a) Dissolution by agreement
(b) Dissolution by notice
(c) Dissolution by court
(d) All of these
Ans: (c) Dissolution by court.
- In case you have missed:- Previous Chapter MCQ Questions
(8) Under dissolution on the happening of certain contingencies, a firm can be dissolved it ——–.
(a) a partner becomes insane
(b) If a partner becomes insolvent
(c) The partnership formed for a particular venture is completed
(d) Both (b) and (c)
Ans: (d) Both (b) and (c)
(9) Lasses, including deficiencies of capital at the time of dissolution should be settled at first from —–.
(a) Partner’s share of goodwill
(b) Selling of or disposing of assets
(c) The profits
(d) Partner’s private property
Ans: (c) The profits
(10) The amount realized from assets along with contribution from partners shall be utilized first for ——- at the time of dissolution.
(a) To pay the deficiency of partner’s capital A/c
(b) To pay off outside liabilities of the firm
(c) Payment to the insolvent partner
(d) Payment of outstanding expenses of the firm
Ans: (b) To pay off outside liabilities of the firm
(11) Which section of partnership Act defines the rule for selling of private debts and firm’s debt at the time of dissolution ——–.
(a) Section 59
(b) Section 29
(c) Section 49
(d) Section 26
Ans: (c) Section 49.
(12) Name the account prepared at the time of dissolution of a partnership to keep the record of sale proceeds of its assets and selling of the liabilities.
(a) Revaluation A/c
(b) Profit & loss A/c
(c) Trading A/c
(d) Realisation A/c
Ans: (d) Realisation A/c
(13) On dissolution of partnership firm, bank overdraft is transferred to —–.
(a) Realisation A/c
(b) Revaluation A/c
(c) Capital A/c
(d) Both (b) and (c)
Ans: (a) Realisation A/c
(14) All assets except ——- are transferred to realisation A/c at the time of dissolution.
(a) Cash in hand
(b) Bank balance
(c) Cash, bank balance and fictitious asset
(d) Fictitious assets
Ans: (c) Cash, bank balance and fictitious asset
- In case you have missed:- NCERT MCQ Questions for Accounting for Partnership Firms – Basic Concepts
For more update follow net explanations page