| 1 |
In case of dissolution, the payment of liabilities should be credited to: |
- A. Realization account
- B. Cash account
- C. Profit and loss account
- D. Liabilities account
|
| 2 |
According to the decision of Garner Vs Murray rule, the loss of insolvent partner is to be shared by solvent partners in the: |
- A. New profit sharing ratio
- B. Old profit sharing ratio
- C. Capital ratio
- D. Gaining ratio
|
| 3 |
Dissolution of firm by the consent of all the partners is called: |
- A. Dissolution by agreement
- B. Dissolution by court
- C. Dissolution on the happening of certain contingencies
- D. Dissolution by notice
|
| 4 |
In case of dissolution, the payment of unrecorded liability is debited to: |
- A. Realization account
- B. Liability account
- C. Revaluation account
- D. Cash account
|
| 5 |
The balance left in the capital accounts in case of dissolution is transferred to: |
- A. Revaluation account
- B. Realization account
- C. Bank account
- D. Profit & loss appropriation A/c
|
| 6 |
Dissolution of firm due to the insolvency or due to the happening of an event, which makes it unlawful for partners to carry on partnership is called: |
- A. Dissolution by agreement
- B. Compulsory dissolution
- C. Dissolution on the happening of certain contingencies
- D. Dissolution by court
|
| 7 |
Reserve of bad and doubtful appearing in the books at the time of dissolution is transferred to: |
- A. Debtors account
- B. Revaluation account
- C. Reserve for bad debts account
- D. Realization account
|
| 8 |
The end or termination of partnership is called: |
- A. Admission
- B. Retirement
- C. Death
- D. Dissolution
|
| 9 |
Joint life policy at the time of dissolution is transferred to: |
- A. Realization account
- B. Solvent partners capital
- C. Insolvent partner's capital account
- D. All partners capital account
|
| 10 |
In case of dissolution, assets taken over by a partner should be debited to: |
- A. Realization account
- B. Partner's capital account
- C. Asset account
- D. Cash account
|
