Direction: Based on the following case, answer the question. Nayana and Arushi were partners sharing profit equally. Their Balance Sheet as at March 31, 2017, was as follows: The firm was dissolved on the above date:Balance Sheet of Nayana and Arushi as on March 31, 2017
Liabilities Amount (₹) Assets Amount (₹) Capitals: Nayana 1,00,000 Arushi 50,000 1,50,000 Bank 30,000 Creditors 10,000 Debtors 25,000 Arushi’s Current Account 15,000 Stock 35,000 Workmen Compensation 5,000 Furniture 40,000 Reserve Bank Overdraft 2,00,000 Machinery 60,000 Nayana's Current Account 10,000 2,00,000
Calculate the amount realised from remaining stock sold at a gain of 15%:
₹17,500
Remaining stock was sold at a 15% gain. The correct amount realised is ₹17,500.
Important Questions from Dissolution of a Partnership Firm
In case of dissolution of partnership firm, all assets, except cash/bank and fictitious assets, are transferred to debit side of:
Match List I with List II:
List – I List – II A. Dissolution Agreement I. When a partner becomes insane B. Dissolution by Court II. By the completion of venture C. Compulsory dissolution III. In accordance with contract between partners D. On happening of certain contingencies IV. Event making it impossible for partners to carry on business Choose the correct answer from the options given below:
Record journal entry for the following on dissolution of a firm:
Firm has a stock of ₹2,40,000. Arun, a partner, took over 50% of the stock at a discount of 15%.
The dissolution of a partnership firm takes place in the following order:
(A) Outsiders’ liabilities are paid out.
(B) Partner’s capital account is settled.
(C) All assets and outside liabilities are transferred to the realization account.
(D) Partner’s loan is repaid in proportion.
(E) Assets are sold and realized.
Choose the correct answer from the options given below:
At the time of dissolution of a partnership firm, the following accounting adjustments are considered:
(A) Partner’s current A/c is transferred to the respective partner’s loan A/c.
(B) Accumulated losses are transferred to the partner’s capital A/c in profit-sharing ratio.
(C) All assets except cash and fictitious assets are transferred to the debit side of Realisation A/c.
(D) Partners’ loans are transferred to Realisation A/c.
(E) All external liabilities are transferred to the credit side of Realisation A/c.
Choose the correct answer from the options given below:
