Chapter 7: Dissolution of Partnership
Is the end of a partnership same as dissolution?
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Simply speaking, 'dissolution' means end of existence. Here, we study it in the context of dissolution of partnership and a partnership firm, where two issues are considered for dissolution:
(i) Dissolution of a partnership firm,
(ii) Dissolution of a partnership
When a partnership firm closes down its business on a permanent basis, or a firm becomes non-existent from a legal point of view, it is known as dissolution of a partnership firm. In this course, we shall study the important aspects of the dissolution of a partnership firm. Subsequently we will study the accounting treatments for dissolution of a firm.
Curriculum
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Dissolution of Partnership Quiz6 questions
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1. Explain the meaning of dissolution of partnership.1 m
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2. What is the dissolution of a partnership firm?1 m
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3. What is voluntary dissolution ?1 m
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4. Who has to bear dissolution expense, at the time of dissolution of a firm ?1 m
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5. How would you deal with the provident fund balance shown in the balance sheet at the time of dissolution?1 m
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6. How would you deal with bad debts return, which is written off earlier ?1 m
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7. Explain the meaning of Realisation Account.1 m
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8. Describe the methods of dissolution of a Partnership Firm.1 m
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9. Where will you record the payment of bills payable under the second method of realisation account ?1 m
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Dissolution of Partnership Quiz20 questions
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True or False Quiz15 questions
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1. What are the responsibilities of partners in partnership firm?1 m
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2. At the time of dissolution, bad debts, which were written off are now recovered. What will be its effect ?1 m
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3. Name the two methods for the dissolution of a partnership firm.1 m
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4. At the end of dissolution, what effect will be given to Cash balance?1 m
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5. In the second method of preparing realisation A/ c, the amount of realisation of assets is written in which A/c ?1 m
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6. On which side of realisation A/c, the unrecorded expenditures given in adjustments are recorded ?1 m
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7. On which side of the realisation A/c, the amount of Joint life insurance policy and the surrender value of the policy is written ?1 m
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8. Name two circumstances under which compulsory dissolution of a firm takes place by Act ?1 m
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9. On occurrence of which specific events, the firm automatically gets dissolved ?1 m
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10. What kind of responsibility would arise of an acting partner who declares to retire without giving public notice ?1 m
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11. How would you deal with loss of realisation account, when the capital is sufficient ?1 m
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12. In which type of partnership, the partnership firm is dissolved by notice?1 m
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13. What do you mean by dissolution under agreement ?1 m
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14. Explain the order in which the amount realised from dissolution of the firm is distributed.1 m
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15. At the time of dissolution, after paying the capital of partners, if any surplus is left on hand. What effect will it be given ?1 m
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16. If loan is given to the firm by the wife of any partner from the woman's personal wealth, then how will it be paid?1 m
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17. Assets of Rs. 20,000 is given against dues of creditors of Rs. 20,000 then what entry will be given ?1 m
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18. At the time of dissolution after closing to which account general reserve account is transferred ?1 m
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19. At the time of dissolution to which account depreciation fund shown in the balance sheet is transferred ?1 m
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20. Due to which contingencies or happenings partnership firm is automatically dissolved ?1 m
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21. When the partner’s loan will be paid at the time of dissolution of partnership firm?1 m
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22. At the time of dissolution of firm if there is no information about realised value of assets shown in the books of account then what will be entry ?1 m
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23. Which balance is shown by cash account after completion of accounts of dissolution ?1 m
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Chapter 7 Practice Material760 KB
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One Line Answer and Theory1.1 MB
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