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

Lecture 1 Basic Concepts and Understanding

Lecture 2 First Method of Realisation

XII P1 Ch 7 Dissolution of Partnership Q9 Q10 Lecture 2

Lecture 3a Second Method of Realisation

dissolution lec 3a 2nd method Realisation

Lecture 3b Short Sums of Journal Entries

XII P1 Ch 7 Dissolution of Partnership illustration 1

Lecture 4 V. Important Theory and Questions for Board Exam

XII Accounts P1 Ch 7 Dissolution of Partnership Imp Q4 pg 310 Lec 4

Lecture 5 Very Important Sums for Board Exam

XII Accounts P 1 Ch7 Dissolution Imp Q5 to Q8 pg 311 Lecture 5
dissolution illustration 8 9 live
Dissolution - Rapid revision & doubt solving live

Objectives

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

Practice Section

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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