Bihar Board 12th Accountancy Objective Answers Chapter 5 Dissolution of a Partnership Firm

Bihar Board 12th Accountancy Objective Questions and Answers

Bihar Board 12th Accountancy Objective Answers Chapter 5 Dissolution of a Partnership Firm

Question 1.
Payment of credit balance of Partners’ Capital Accounts at the time of dissolution of a firm is made to:
(A) Partners
(B) Firm
(C) Wife
(D) None of these
Answer:
(A) Partners

Question 2.
On dissolution of a firm Partner’s Loan A/c is transferred to:
(A) Realisation A/c
(B) Partners’ Capital A/cs
(C) Suspense A/c
(D) None of these
Answer:
(D) None of these

Question 3.
At the time of dissolution of firm book value of assets is recorded in which side of the Realisation Account ?
(A) Debit Side
(B) Credit Side
(C) All of the above
(D) Liabilities Side
Answer:
(A) Debit Side

Question 4.
Realisation expenses are recorded in which side of Realisation A/c:
(A) Liabilities
(B) Assets
(C) Credit
(D) Debit
Answer:
(C) Credit

Question 5.
Realisation Account is a :
(A) Personal A/c
(B) Nominal A/c
(C) Read A/c
(D) None of these
Answer:
(B) Nominal A/c

Question 6.
On dissolution of the firm, Partners’ Capital Accounts are closed through :
(A) Realisation Account
(B) Drawings Account .
(C) Bank Account
(D) Loan Account
Answer:
(C) Bank Account

Question 7.
Unrecorded assets when taken over by a partner are shown in:
(A) Debit side of Realisation A/c
(B) Debit side of Bank A/c
(C) Credit side of Realisation A/c
(D) Credit side of Bank A/c
Answer:
(C) Credit side of Realisation A/c

Question 8.
Expenses on dissolution of firm is called :
(A) Realisation Expenses
(B) Legal Expenses
(C) Loss Expenses
(D) None of these
Answer:
(A) Realisation Expenses

Question 9.
Sundry creditors amounted to ₹ 8,000. They were paid at a discount of 5 %. Realisation A/c will be debited by :
(A) ₹ 8,000
(B) ₹ 7,600
(C) ₹ 400
(D) ₹ 8,400
Answer:
(B) ₹ 7,600

Question 10.
Amount realised from sale of assets is recorded in :
(A) Debit side of Realisation Account
(B) Credit side of Realisation Account
(C) Liabilities side of Balance Sheet
(D) Assets side of Balance Sheet
Answer:
(B) Credit side of Realisation Account

Question 11.
A firm can be voluntarily dissolved by the partners :
(A) On Majority basis
(B) On 3/4 Member’s decision
(C) On 1/2 Member’s decision
(D) None of these
Answer:
(D) None of these

Question 12.
On dissolution of a firm, amount realised from an unrecorded asset is credited to:
(A) partners’ Capital Accounts
(B) Cash Account
(C) Realisation Account
(D) Revaluation Account
Answer:
(C) Realisation Account

Question 13.
Profit/loss on Realisation Account is distributed among partners:
(A) In Profit-sharing Ratio
(B) In Capital Ratio
(C) Equally
(D) None of these
Answer:
(A) In Profit-sharing Ratio

Question 14.
Which of the following is correct profit or loss in case the amount received from the sale of assets is ₹ 50,000, total assets is ₹ 60,000, total liabilities ₹ 20,000 and realisation expenses ₹ 2,000 ?
(A) ₹ 12,000 Loss
(B) ₹ 32,000 Profit
(C) ₹ 30,000 Loss
(D) ₹ 12,000 Profit
Answer:
(A) ₹ 12,000 Loss

Question 15.
What will be the total assets (except cash) of the firm from the following: if Creditor ₹ 15,000, Partner’s loan ₹ 10,000, Partners’ capital ₹ 40,000. Cash in hand ₹ 5,000
(A) ₹ 60,000
(B) ₹ 65,000
(C) ₹ 70,000
(D) ₹ 55,000
Answer:
(B) ₹ 65,000

Question 16.
If the total assets are ₹ 3,25,000 and the total outside liabilities ₹ 45,000 then the amount of all partner’s capital will be:
(A) ₹ 3,70,000
(B) ₹ 2,80,000
(C) ₹ 3,00,000
(D) None of these
Answer:
(B) ₹ 2,80,000

Question 17.
Insolvency of a partner will come under what type of dissolution of a firm ?
(A) Dissolutiuon by Court
(B) Compulsory Dissolution
(C) On happening of certain contingencies
(D) None of these
Answer:
(C) On happening of certain contingencies

Question 18.
On firm’s dissolution, which one of the following account should be prepared at the last ?
(A) Realisation Account
(B) Partner’s Capital Accounts
(C) Cash/Bank Account
(D) Partner’s Loan Account
Answer:
(C) Cash/Bank Account

Question 19.
On dissolution of a firm, realisation account is debited with:
(A) All assets to be realised
(B) All outside liabilities of the firm
(C) Cash received on sale of assets
(D) Any assets taken over by one of the partners
Answer:
(A) All assets to be realised

Question 20.
On dissolution of a firm, out of the proceeds received from the sale of assets will be paid first of all:
(A) Partner’s Capitals
(B) Partner’s Loan to Firm
(C) Partner’s additional capital
(D) Outside Creditors
Answer:
(D) Outside Creditors

Question 21.
In the event of dissolution of partnership firm, the provision for doubtful debts is transferred to :
(A) Realisation Account
(B) Partners’ Capital Accounts
(C) Sundry Debtors Account
(D) None of the above
Answer:
(A) Realisation Account

Question 22.
On dissolution, if a partner undertakes to make payment of a liability of the firm, the account to be debited is:
(A) profit & Loss Account
(B) Realisation Account
(C) Partner’s Capital Account
(D) Cash Account
Answer:
(B) Realisation Account

Question 23.
At the dime of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :
(A) Realisation Account
(B) Creditors’ Account
(C) Partners’ Capital Accounts
(D) Profit & Loss Account
Answer:
(C) Partners’ Capital Accounts

Question 24.
On dissolution, goodwill account is transferred to :
(A) In the Capital Accounts of Partners
(B) In the Credit of Cash Accounts
(C) In the Debit of Realisation Account
(D) In the Credit of Realisation Account
Answer:
(C) In the Debit of Realisation Account

Question 25.
At the time of dissolution of partuership firm, fictitions assets are transferred to :
(A) Capital Accounts of Partners
(B) Realisation Account
(C) Cash Account
(D) Partners’ Loan Account
Answer:
(A) Capital Accounts of Partners

Question 26.
On dissolution of a firm, a partner paid 1,500 Rs. for firm’s realisation expenses. Which account will be debited ?
(A) Cash Account
(B) Realisation Account
(C) Capital Account of the Partner
(D) Profit & Loss A/c
Answer:
(B) Realisation Account

Question 27.
On taking responsibility of payment of realisation expenses by a partner, the account credited will be :
(A) Realisastion Account
(B) Cash Account
(C) Capital Account of the Partner
(D) None of the above
Answer:
(C) Capital Account of the Partner

Question 28.
When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to :
(A) Realisation Account
(B) Partners’ Capital Account
(C) Partner’s Loan Account
(D) None of these
Answer:
(B) Partners’ Capital Account

Question 29.
Which of the following is transferred to Realisation Account ?
(A) Balance of Profit Account
(B) Balance of Prfit & Loss Account
(C) Amount realised on sale of assets
(D) Reserves
Answer:
(C) Amount realised on sale of assets

Question 30.
On disolution of firm, loss calculated in realisation account is debited/credited to which account ?
(A) Cash Account
(B) Partners’ Capital Accounts
(C) Realisation Account
(D) None of these
Answer:
(B) Partners’ Capital Accounts

Question 31.
Which of the following is not transferred to Realisatsion Account ?
(A) Balance of Cash Account
(B) Balance of Reserves
(C) Balance of Profit & Loss Account
(D) All of the above
Answer:
(D) All of the above

Question 32.
On taking responsibility of payment of a liability of ₹ 20,000 by a partner, the account credited will be :
(A) Realisation Account
(B) Cash Account
(C) Capital Account of the Partner
(D) Liability Account
Answer:
(C) Capital Account of the Partner

Question 33.
Cash balance shown in the Balance Sheet is shown on dissolution of firm in :
(A) Realisation Account
(B) Cash Account
(C) Capital Account
(D) None of the Account
Answer:
(B) Cash Account

Question 34.
There was an Unrecorded asset of ₹ 12,000 which was taken over by a partner at ₹ 10,500. Partner’s Capital Account will be debited by…….
(A) ₹ 12,000
(B) ₹ 10,500
(C) ₹ 1,500
(D) ₹ 32,500
Answer:
(B) ₹ 10,500

Question 35.
On dissolution of a firm, Bank overdraft is transferred to:
(A) Cash Account
(B) Bank Account
(C) Realisation Account
(D) Partners’ Capital Account
Answer:
(C) Realisation Account

Question 36.
On dissolution of a firm, Partner’s Loan Account is transferred to:
(A) Realisation Account
(B) Partner’s Capital Account
(C) Partner’s Current Account
(D) None of these
Answer:
(D) None of these

Question 37.
The accumulated profits and reserves are transferred to:
(A) Realisation Accounts
(B) Partners’ Capital Accounts
(C) Bank Account
(D) None of these
Answer:
(B) Partners’ Capital Accounts

Question 38.
On dissolution, Goodwill Account is transferred to :
(A) In the Capital Accounts of Partners
(B) On the Credit side of Cash Account
(C) On the Debit side of Realisation Account
(D) On the Credit side of Realisation Account
Answer:
(C) On the Debit side of Realisation Account

Question 39.
On dissolution, when a partner takes over an asset……….is debited :
(A) Realisation Account
(B) Partner’s Capital Account
(C) Cash Account
(D) Asset Account
Answer:
(B) Partner’s Capital Account

Question 40.
After transferring liabilities like creditors and bills payable in the Realisation Account in the absence of any informations regarding their payment, such liabilities are treated as :
(A) Never paid
(B) Fully paid
(C) Partly paid
(D) None of these
Answer:
(B) Fully paid

Question 41.
Unrecorded liabilities when paid are shown in :
(A) Debit side of Realisation Account
(B) Debit side of Bank Account
(C) Credit side of Realisation Account
(D) Credit side of Bank Account
Answer:
(A) Debit side of Realisation Account