Chapter 7: Dissolution of Partnership

Is the end of a partnership same as dissolution?

Details

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

  • Pg 312 Q.9 and Q.10
    21 m 24 s
  • Pg. 295 Illustration 3
    10 m 8 s
  • Pg. 286 - Illustration 1
    17 m 20 s
  • Pg. 310 - Q.4
    22 m 19 s
  • Pg. 311 - Q.5 to Q.8
    22 m 55 s
  • Dissolution of Partnership Quiz
    6 questions
  • 1. Explain the meaning of dissolution of partnership.
    1 m
  • 2. What is the dissolution of a partnership firm?
    1 m
  • 3. What is voluntary dissolution ?
    1 m
  • 4. Who has to bear dissolution expense, at the time of dissolution of a firm ?
    1 m
  • 5. How would you deal with the provident fund balance shown in the balance sheet at the time of dissolution?
    1 m
  • 6. How would you deal with bad debts return, which is written off earlier ?
    1 m
  • 7. Explain the meaning of Realisation Account.
    1 m
  • 8. Describe the methods of dissolution of a Partnership Firm.
    1 m
  • 9. Where will you record the payment of bills payable under the second method of realisation account ?
    1 m
  • Dissolution of Partnership Quiz
    20 questions
  • True or False Quiz
    15 questions
  • 1. What are the responsibilities of partners in partnership firm?
    1 m
  • 2. At the time of dissolution, bad debts, which were written off are now recovered. What will be its effect ?
    1 m
  • 3. Name the two methods for the dissolution of a partnership firm.
    1 m
  • 4. At the end of dissolution, what effect will be given to Cash balance?
    1 m
  • 5. In the second method of preparing realisation A/ c, the amount of realisation of assets is written in which A/c ?
    1 m
  • 6. On which side of realisation A/c, the unrecorded expenditures given in adjustments are recorded ?
    1 m
  • 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
  • 8. Name two circumstances under which compulsory dissolution of a firm takes place by Act ?
    1 m
  • 9. On occurrence of which specific events, the firm automatically gets dissolved ?
    1 m
  • 10. What kind of responsibility would arise of an acting partner who declares to retire without giving public notice ?
    1 m
  • 11. How would you deal with loss of realisation account, when the capital is sufficient ?
    1 m
  • 12. In which type of partnership, the partnership firm is dissolved by notice?
    1 m
  • 13. What do you mean by dissolution under agreement ?
    1 m
  • 14. Explain the order in which the amount realised from dissolution of the firm is distributed.
    1 m
  • 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
  • 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
  • 17. Assets of Rs. 20,000 is given against dues of creditors of Rs. 20,000 then what entry will be given ?
    1 m
  • 18. At the time of dissolution after closing to which account general reserve account is transferred ?
    1 m
  • 19. At the time of dissolution to which account depreciation fund shown in the balance sheet is transferred ?
    1 m
  • 20. Due to which contingencies or happenings partnership firm is automatically dissolved ?
    1 m
  • 21. When the partner’s loan will be paid at the time of dissolution of partnership firm?
    1 m
  • 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
  • 23. Which balance is shown by cash account after completion of accounts of dissolution ?
    1 m
  • Chapter 7 Practice Material
    760 KB
  • One Line Answer and Theory
    1.1 MB
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