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Class 12 Dissolution of Partnership Firm worksheet
CBSE Accountancy. Modes of dissolution, the Realisation Account, assets taken over and creditors settled, realisation expenses, profit or loss on realisation and final payments to partners. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
On dissolution, assets and outside liabilities are transferred to the:
- Profit and Loss Appropriation Account
- Capital Reserve
- Revaluation Account
- Realisation Account
Answer
(d) Realisation Account
- 2.
A firm is dissolved because a partner of a partnership at will gives notice to dissolve it. This is:
- dissolution by notice
- dissolution of partnership only
- dissolution on the happening of a contingency
- dissolution by the court
Answer
(a) dissolution by notice
- 3.
On dissolution, a partner pays the realisation expenses. The journal entry is:
- Bank A/c Dr. To Realisation A/c
- Partners’ Capital A/cs Dr. To Realisation A/c
- Partner’s Capital A/c Dr. To Realisation A/c
- Realisation A/c Dr. To Partner’s Capital A/c
Answer
(d) Realisation A/c Dr. To Partner’s Capital A/c
Section B · short answer
- 4.
Distinguish between dissolution of partnership and dissolution of the firm.
Answer
Dissolution of partnership changes the relation among partners while the firm continues; dissolution of the firm ends the business and the relation of all partners.
- 5.
Give an example of each: (a) dissolution by the court (b) compulsory dissolution
Answer
(a) a partner becomes of unsound mind and another partner applies to the court (b) all the partners, or all but one, become insolvent
Section C · long answer
- 6.
Explain the different modes of dissolution of a partnership firm.
Answer
By agreement; compulsory dissolution (insolvency, illegal business); on a contingency (end of term, completion of venture, death or insolvency of a partner); by notice in a partnership at will; by order of the court.
Fresh sheets for your child
In the app, every Dissolution of Partnership Firm sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
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