List of top Accountancy Questions on Dissolution of Partnership Firm

When realisation expenses are paid by a partner on behalf of the firm, what is the journal entry made?
 

Match List-I with List-II:\[\begin{array}{|c|c|} \hline \text{List-I} & \text{List-II} \\ \hline \text{(A) Payment of loans due to partners} & \text{(I) Realisation A/c Dr To Bank A/c} \\ \hline \text{(B) Settlement of partners' accounts (debit balance)} & \text{(II) Bank A/c Dr To Loan to Partners A/c} \\ \hline \text{(C) Settlement of loan by firm to a partner} & \text{(III) Bank A/c Dr To Partner's Capital A/c} \\ \hline \text{(D) Settlement of unrecorded liability} & \text{(IV) Partner's Loan A/c Dr To Bank A/c} \\ \hline \end{array}\]Choose the correct answer:

Match List-I with List-II:\[\begin{array}{|c|c|} \hline \text{List-I} & \text{List-II} \\ \hline \text{(A) Compulsory Dissolution} & \text{(I) Partner becomes insane} \\ \hline \text{(B) Dissolution by notice} & \text{(II) Death of a partner} \\ \hline \text{(C) Dissolution by Court} & \text{(III) Business becomes illegal} \\ \hline \text{(D) Dissolution on certain contingencies} & \text{(IV) Partnership at will} \\ \hline \end{array}\]Choose the correct answer from the options given below:

Rishika and Shivika were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2024 stood as follows: 
Balance Sheet of Rishika and Shivika as at 31st March, 2024

The firm was dissolved on the above date and the following transactions took place: 
(i) Equipements were given to creditors in full settlement of their account. 
(ii) Investments were sold at a profit of 20% on its book value. 
(iii) Full amount was collected from debtors. 
(iv) Stock was taken over by Rishika at 50% discount. 
(v) Actual expenses of realisation amounted to ₹ 2,00,000 which were paid by the firm. Prepare Realisation Account.

Manav and Namit were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March 2024 was as follows:

The firm was dissolved on the above date and the following transactions took place: 
[(i)] Stock was given to creditors in full settlement of their account. 
[(ii)] Investments were taken over by Manav at 120% of book value. 
[(iii)] Bad debts amounted to ₹ 2,00,000. 
[(iv)] Machinery was realised at 50% discount. 
[(v)] Realisation expenses amounted to ₹ 1,00,000 which were paid by Namit.
Prepare Realisation Account.

Read the following information carefully and answer the next five questions :

G, K and B were partners running a partnership for last 10 years, sharing profit and loss in the ratio of 5 : 3 : 2. Post Covid, their firm was affected badly and started incurring losses. On 31st March, 2023 they all decided to dissolve the firm due to continuous losses. Their capital balances were ₹ 4,00,000, ₹ 3,00,000 and ₹ 2,00,000 respectively. Firm had liabilities ₹ 80,000, Cash balance ₹ 40,000, other Sundry Assets ₹ 8,50,000 and P&L A/c constituted the rest. Assets realised at 80% and liabilities were paid in full. There was unrecorded liability of ₹ 50,000 which was settled at ₹ 40,000. Realisation expenses amounted to ₹ 30,000, being paid by G on behalf of the firm.