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In the event of dissolution of the firm, the partner’s assets are first used for payment of the following: - Accounts

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प्रश्न

In the event of dissolution of the firm, the partner’s assets are first used for payment of the following:

विकल्प

  • Firm’s liabilities

  • Partner’s personal liabilities

  • None of the two

  • Any of the two

MCQ
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उत्तर

Partner’s personal liabilities

Explanation:

In the event of the firm’s dissolution, the partner’s assets are initially used to settle his personal liabilities.

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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) 13. | पृष्ठ ५.११८

संबंधित प्रश्न

Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of settlement of assets and liabilities.


Expenses incurred on a dissolution of a partnership firm.

Assets and liabilities are transferred to Realisation Account at their ______ value.


Devendra and Ganesh were partners sharing profits and losses in the ratio of 3: 2. They dissolved the partnership firm on 31st March 2013 when their position was as follows:
The assets realised as follows:

Balance Sheet as on 31.03.2013
Liabilities Amount Rs Assets Amount Rs.
Sundry Creditor 12,500 Debtors             56,250  
Bank Overdraft 10,000    Less: R.D.D.      6,250 50000
Reserve Fund 15,000 Stock 112500
Capital Accounts:   Furniture 25000
   Devendra   1,15,000   Motor Car 37500
   Ganesh         75,000   Cash in hand 2500
       
  227500   227500

(1) Debtors Rs. 45,000, stock Rs. 1,00,000 and goodwill Rs. 12,500

(2) The motor car was taken over by Devendra for Rs. 35,000 and furniture by Ganesh for Rs. 30,000.

(3) The creditors were paid Rs. 11,250 in full settlement.

(4) The realisation expenses were Rs. 5,000.

Pass necessary journal entries in the books of the firm.




Write the word / term / phrase, which can substitute the following statements.
Credit balance in Realisation Account.


Pannalal, Babulal and Hiralal were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31st March, 2008.

             Balance Sheet as on 31st March, 2008

Liabilities Amount (Rs) Assets Amount (Rs)
Capital Accounts:   Machinery 25000
Pannalal 30000 Stock 10000
Babulal 10000 Debtors 27500 26000
Hiralal 10000 Less : R.D.D 1500
General Reserve 3000

Investment

12000
Creditors 20000 Profit and Loss A/c 9000
Pannalal’s Loan A/c 4000 Bank 2000
Bills payable 7000    
  84000   84000

On the above date the partners decided to dissolve the firm:

1) Assets were realised: Machinery Rs 22,500, Stock Rs 9,000, Investment Rs 10,500, Debtors Rs 22,500.

2) Dissolution expenses were Rs 1,500.

3) Goodwill of the firm realised Rs 12,000

Pass the necessary Journal entries in the books of the firm.


Name the account opened to find out the Profit or Loss on Sale of Assets and Settlement of Liabilities?


Write the word/term/phrase, which can substitute each of the following statements.

"Liability likely to arise in future on happening of certain events".


Do you agree or disagree with the following statement:

On dissolution, cash/bank account is closed automatically.


Choose the correct order in which a partnership firm, at the time of its dissolution, will apply the amount realised from the sale of its assets, including any amount contributed by the partners, towards the payment of:

P: Partners' loan

Q: Firm's debts

R: Balance of partners' capital

S: Surplus divided amongst the partners in their profit-sharing ratio


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