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A partnership firm is compulsorily dissolved: - Accounts

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प्रश्न

A partnership firm is compulsorily dissolved:

विकल्प

  • When the business of the firm is declared illegal.

  • When a partner of the firm dies.

  • When a partner of the firm becomes insolvent.

  • When a partner transfers his share to some other person without the consent of other partners.

MCQ
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उत्तर

When the business of the firm is declared illegal.

Explanation:

A partnership firm is compulsorily dissolved when the business of the firm becomes illegal under the law. This situation makes it impossible for the firm to continue its operations legally, and therefore, the firm must be dissolved. While the death or insolvency of a partner may lead to dissolution under certain conditions, it is not automatic unless specified in the partnership agreement or by law.

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  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 5: Dissolution of Partnership Firm - OBJECTIVE TYPE QUESTIONS [पृष्ठ ५.११८]

APPEARS IN

डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
अध्याय 5 Dissolution of Partnership Firm
OBJECTIVE TYPE QUESTIONS | Q (A) 14. | पृष्ठ ५.११८

संबंधित प्रश्न

Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of court's intervention.


Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3: 2. In spite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Prachi was deputed to realise the assets and pay the liabilities. She was aid Rs 1,000 as the commission for her services. The financial position of the firm was as follows:

Liabilities Rs Assets Rs

Creditors

Investment Fluctuation

Fund

Capitals

Prachi

Ritika

 

 

2,00,000

30,000

30,000

40,000

Furniture

Stock

Investments

Cash

Ishita's Capital

 

37,000

5,500

15,000

9,000

18,000

 

  84,500   84,500

Answer in one sentence only.

What is dissolution of partnership firm?


If the number of partners in a firm falls below two, the firm stands_________.


Give the word/term/phrase which can substitute the following statement.

Debit balance of Realisation account.


Insolvent Partner Capital A/c debit side total is ₹ 10,000 and the credit side total is  ₹ 6,000. Calculate deficiency.


Kalpana and Bela were partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as on 31st March, 2019 was as follows:

Balance Sheet as on 31st March 2019
Liabilities Amount (₹) Assets Amount (₹)
Capital Accounts:    Building 14,000
Kalpana 20,000 Plant 18,000
Bela 12,000 Debtors 28,000
Current Accounts:   Stock 10,000
Kalpana 6,000 Bank 12,000
Bela 4,000    
Creditors 34,800    
Bills Payable 5,200    
  82,000   82,000

The firm was dissolved on the above date and the assets realised as under:

(1) Plant ₹ 16,000, Building ₹ 12,000, Stock ₹ 8,000 and Debtors ₹ 24,000.

(2) Kalpana agreed to pay off the Bill Payable.

(3) Creditors were paid in full.

(4) Dissolution expenses were ₹ 2,800.

Prepare: Realisation A/c, Partner's current A/c, Partner's Capital A/c and Bank A/c.


On which of the following grounds the court may order a partnership firm to be dissolved?


Complete the table.

Debit side total of
Realisation A/c
Credit side total of
Realisation A/c
Loss on
Realisation
 ₹ 20,000 ₹ 4,000

Do you agree or disagree with the following statement:

On dissolution, cash/bank account is closed automatically.


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