Practice Test


Q1) In case of dissolution, assets and liabilities are transferred to ______ A/c Show Answer


Q2) Dissolution expenses are credited to _____ A/c. Show Answer


Q3) Deficiency of Insolvent partner will be suffered by solvent partners in their ________ ratio. Show Answer


Q4) If any asset is taken over by partner from firm his Capital A/c will be _______. Show Answer


Q5) If any unrecorded liability is paid on dissolution of the firm _______ account is debited. Show Answer


Q6) Partnership is compulsorily dissolved when the partners of the firm become ________. Show Answer


Q7) Assets and liabilities are transferred to Realisation Account at their _______ values. Show Answer


Q8) If the number of partners in a firm falls below two, the firm stands _______. Show Answer


Q9) Realisation Account is _______ on realisation of assets. Show Answer


Q10) All activities of the partnership firm cease (stop) on _______ of firm. Show Answer


Q11) If any liability is taken over by the partner, the _______ A/c is to be debited. Show Answer


Q12) Excess of a credit over debit in Realisation A/c indicates ______ on realisation. Show Answer


Q13) Excess of a debit over credit in Realisation A/c shows ______ on realisation. Show Answer


Q14) On payment of Realisation expenses ________ A/c is credited. Show Answer


Q15) The balance of Realisation A/c is shared by ______. Show Answer


Q16) The firm is dissolved automatically on the retirement of a partner. Show Answer


Q17) On dissolution Cash or Bank Account is closed automatically. Show Answer


Q18) On dissolution Bank overdraft is transferred to Realisation Account. Show Answer


Q19) A Solvent Partner having debit balance to his Capital Account does not share the deficiency of Insolvent Partner?s Capital Account. Show Answer


Q20) At the time of dissolution of Partnership Firm all assets should be transferred to Realisation A/c. Show Answer


Q21) Debit balance of insolvent Partner?s Capital A/c is known as Capital Deficiency. Show Answer


Q22) At the time of dissolution, loan from partner will be transferred to Realisation Account. Show Answer


Q23) Dissolution takes place when the relation among the partner?s comes to an end. Show Answer


Q24) The insolvency loss at the time of dissolution of the firm is shared by the Solvent Partner?s in their profit sharing ratio. Show Answer


Q25) Realisation loss is not transferred to insolvent Partner?s Capital Account. Show Answer


Q26) If the partnership firm makes loss on one year it has to be dissolved. Show Answer


Q27) After dissolution of partnership firm, it can continue doing its normal business. Show Answer


Q28) Value of goodwill need not be found out when there is dissolution of a firm. Show Answer


Q29) Value of goodwill need not be found out when there is dissolution of a firm. Show Answer


Q30) If one of the partners become insolvent, the firm has to be dissolved. Show Answer


Q31) Unrecorded liabilities are also to be considered and paid on dissolution of a firm. Show Answer


Q32) When a partner takes over asset, Realisation A/c is credited. Show Answer


Q33) A Partner?s Loan is not transferred to Realisation Account. Show Answer


Q34) The realisation profit or loss is shared by the partners in their capital ratio. Show Answer


Q35) Loss on realisation is not transferred to insolvent partners capital account. Show Answer


Q36) Dissolution of partnership firm means complete closure of partnership business. Show Answer


Q37) Excess of a debit over credit in Realisation A/c indicates profit on realization. Show Answer


Q38) Excess of a credit over debit in Realisation A/c indicates profits on realization. Show Answer


Q39) On dissolution of partnership firm, all assets are transferred to the credit side of the Realisation A/c. Show Answer


Q40) On dissolution of partnership firm, external liabilities are transferred to the credit side of the Realisation A/c. Show Answer


Q41) QUESTION Show Answer


Q42) Gain ratio is calculated on_______ Show Answer


Q43) Gain ratio is the ratio in which_______ Show Answer


Q44) Share of profit of a deceased partner till the date of death is_______ Show Answer


Q45) An amount received from the Insurance Company against the joint life policy is ________ Show Answer


Q46) M, N and S are partners in a firm having joint life policy of Rs.10,00,000 on which premium has been paid by a firm. M dies and his legal representatives want the whole amount of the policy whereas N and S want to distribute the amount among all the partners. Show Answer


Q47) On death of partner, his share of profit from the date of balance sheet to the date of his death is debited to ______ account. Show Answer


Q48) Profit and Loss Suspense account is shown in the new balance sheet on _____ side. Show Answer


Q49) Deceased partner?s legal representative loan A/c. is shown in the balance sheet on _____ side. Show Answer


Q50) Death is a compulsory______ Show Answer


Q51) The balance on the Capital A/c of a partner, on his death is transferred to ______ A/c Show Answer


Q52) Retiring partner is entitled to his share of goodwill Show Answer


Q53) Retiring partner is not entitled to his share of general reserve Show Answer


Q54) The capital account of a retiring partner always shows a debit balance. Show Answer


Q55) An amount due to a deceased partner is transferred to his executor?s loan A/c Show Answer


Q56) If goodwill is written off a retiring partner?s capital account is debited Show Answer


Q57) Death of a partner is like a compulsory retirement Show Answer


Q58) Total amount due to deceased partner is paid in cash to executor immediately after his death Show Answer


Q59) On the death of a partner, his share in the goodwill is divided equally among continuing partners Show Answer


Q60) Deceased Partner?s share in profit upto the date of his death will be debited to his capital A/c Show Answer


Q61) It is not possible to revalue the assets and liabilities of the firm on death of a partner. Show Answer


Q62) A deceased partner is not entitled to goodwill. Show Answer


Q63) A deceased partner must be paid interest on his capital Show Answer


Q64) Deceases partner?s legal representative?s loan A/c appears in the balance sheet of the new firm on assets side. Show Answer


Q65) A partnership firm is automatically dissolved on the death of its partners Show Answer


Q66) When a partner dies, all amounts due to him are transferred to the capital Account of surviving partners. Show Answer


Q67) It is necessary to prepare a Profit and Loss Adjustment A/c and balance sheet immediately on the death of a partner to ascertain his share of Profit and the amount due to him Show Answer


Q68) If there is no provision in the partnership deed, partnership firm is automatically dissolved on the death of any of its partners. Show Answer


Q69) After the death of a partner, it is necessary to revalued the assets and liabilities of the partnership firm Show Answer


Q70) The legal representative of a deceased partner is entitled to share General Reserve of the firm. Show Answer


Q71) After the death of a partner, entire amount due to deceased partner is paid to legal representative of the deceased partner Show Answer


Q72) After the death of a partner, continuing partners will share Goodwill in their new proportion. Show Answer