NCERT Class 12 Accountancy Chapter 5 Dissolution of Partnership Firm Extra Questions and Answers
Class 12 Accountancy Chapter 5 Extra Questions and Answers – Dissolution of Partnership Firm. Here in this Page Class XII Students can Learn Extra Questions & Answer 5th Chapter Accountancy Part I fully Inside.
We Provided Here Dissolution of Partnership Firm Accountancy Chapter 5 MCQ Questions, Very Short Type Questions and Short Type Questions.
Class 12 Accountancy Chapter 5 Extra Question with Answer – Dissolution of Partnership Firm
Accountancy Chapter 5 Dissolution of Partnership Firm Class 12 Inside 3 marks, 2 Marks & And 1 Marks Important Questions and Answers.
Board |
NCERT |
Class |
12 |
Book Title |
Accountancy Part I |
Chapter |
5 |
Chapter Name |
Dissolution of Partnership Firm |
Topic |
Extra Questions |
(Q1) State any two conditions under which Dissolution of partnership can happen.
Ans: Any two condition on which dissolution of partnership can take place are as follows:
(a) If admission of a new partner happens in the firm.
(b) If there is an expiry of the period of partnership.
(Q2) State any two situation under a partnership firm is dissolved?
Ans: The two condition/situation under which a partnership firm can be dissolved are as follows:
(a) When the business of the firm becomes unlawful
(b) When all or anyone of the partner becomes insolvent.
(Q3) During dissolution of a partnership firm who is paid first about their claims from the sale proceeds of assets?
Ans: At the time of dissolution of a partnership firm, out of the sale proceeds of the firm, at first the third party or the outsider’s claims are settled.
(Q4) On dissolution of a firm, out of the proceeds received from the sale o assets, who will b paid at lost?
Ans: On dissolution of a firm, the person or party to receive the proceeds of sale of asset is the partners of the firm.
(Q5) On Dissolution of a firm, where are asset shown in the balance sheet transferred?
Ans: The assets appearing in balance sheet are transferred to debit side of realisation account during dissolution of a firm.
(Q6) Define Realisation Account.
Ans: A “Realisation Account” is opened during dissolution of a partnership firm in order to find out the profits or loss or realization or sale of assets and payment of liabilities.
(Q7) State the treatment of General reserve and accumulated profits or losses during dissolution of a firm.
Ans: During of a firm, the General reserve and accumulated profit or loss is transferred to partner’s capital account in their profit sharing ratio.
(Q8) Give the journal entry if a partner undertakes to make a payment of a liability of the firm at the time of dissolution of a partnership firm.
Ans: Realisation A/c Dr
To partner’s capital A/c (Being, liability taken by a partner at the dissolution of a partnership firm).
(Q9) Mention the accounts prepared in order to close the books of accounts of a firm during dissolution.
Ans: The following accounts are opened in order to close the accounts of a firm during dissolution.
(a) Realisation A/c
(b) Partner’s loan A/c
(c) Partner’s capital account
(d) Cash or bank account
(Q10) On dissolution of a firm, what entry is passed on making payment of realization expenses b a partner?
Ans: Realisation A/c Dr
To partner’s capital A/c
(Being payment of realization expenses paid by partner)
In case you are missed :- NCERT Extra Questions for Accounting for Partnership : Basic Concepts
(Q11) On dissolution of a partnership, which account should be prepared at the end?
Ans: Cash/bank account is prepared at the end while a partnership firm is dissolved.
(Q12) How is ‘cash in hand’ treated at the time of dissolution of a firm?
Ans: “cash in hand” is transferred to the debit side of cash account at the time of dissolution of a firm.
(Q13) How is “loss or profit on realization” account treated drawing dissolution of a partnership firm?
Ans: “Profit or loss “On realization” is transferred to partner’s capital account in their profit sharing ratio.
(Q14) Differentiate between “Dissolution of partnership” and “Dissolution of partnership firm” on the basis of “Economic Relationship”.
Ans: The difference are as follows:
Basic
(i) Economic relationship
Dissolution of partnership
(i) Economic relationship between partners continues in a changed manner.
Dissolution of partnership firm
(i) Economic relationship between partners comes to an end.
(Q15) Why is partner’s wife loan transferred to realization A/c?
Ans: During dissolution of partnership firm, partner’s wife loan is transferred to Realisation A/c as it is considered as an external liability.
(Q16) What entry is passed when an asset is given to a creditor in full settlement of his dues in realization A/c?
Ans: There is no requirement is pass any such entries for giving an asset to the creditor in full settlement of his dues.
(Q17) At which value the assets against which provisions exists are transferred to realisation A/c during dissolution of a firm?
Ans: The assets against which provisions exists are transferred at their value gross value to the realization A/c during dissolution of a partnership firm.
(Q18) Why is partner’s loan transferred to realization A/c during dissolution of a firm?
Ans: Partner’s loan is not an external liability for the firm and hence it is not transferred to realisation A/c.
(Q19) State the treatment for patent shower in balance sheet during dissolution of a firm.
Ans: “patents” appearing in the balance sheet are transferred to realization Account during dissolution of a firm.
(Q20) State the reason behind debiting a partner’s capital account incase an asset is being taken over by him.
Ans: A partner’s capital account is debited incase any asset is taken over by him because the claim of capital account is reduced by the value of asset taken over.
(Q21) Does the change is profit sharing ratio result in dissolution of a partnership firm?
Ans: No, the change in profit sharing ratio results in dissolution of partnership and not of the partnership firm.
In case you are missed :- NCERT Extra Questions for Reconstitution of a Partnership Firm – Admission of a Partner
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