CHAPTER-6

DISSOLUTION OF PARTNERSHIP
FIRM
TRUE- FALSE QUESTIONS:
S.N Question
o.
1 On payment of expenses of dissolution, Realisation Account will be debited.
2 On dissolution of Partnership firm, losses are first of all met Out of private assets of
partners

3 At the time of dissolution of a partnership, sale price of assets is recorded in the debit
side of realization account
4 In the event of dissolution of a partnership firm, the provision for doubtful debts is
transferred to Sundry Debtors Account.
5 In the books of the firm, at the dissolution of the firm, revaluation account is opened
and not the Realisation Account
6 Dissolution by agreement: A firm is dissolved With the consent of all the partners
and In accordance with a contract between the partners

7 Third party debts will be paid at last

8 Loan of a partner spouse is treated as internal liabilities

9 Realisation account is a nominal account

10 New ratio is not to be calculated on dissolution

11 Assets taken over by one of the creditors is recorded in realisation account on debit
side.

12 Dissolution of partnership may not result into closure of the business.

13 Partners’ capital account is debited when dissolution expenses paid by the firm on
behalf of a partner.

14 Provision for doubtful debts is paid off in full on the debit side of realisation account,
if no information is available.

15 It will be assumed that assets realised at full in case no information is available

KVS ZIET BHUBANESWAR 12/102021 Page 1

 ASWER KEY
Q.No.1 True
Q.No.2 False
Q.No.3 False
Q.No.4 False
Q.No.5 False
Q.No.6 True
Q.No.7 False
Q.No.8 False
Q.No.9 True
Q.No.10 False
Q.No.11 False
Q.No.12 True
Q.No.13 True
Q.No.14 False
Q.No.15 False

PREPARED BY THE PGTs ( COMMERCE ) OF BHUBANESWAR, GUWAHATI,

KOLKATA, RANCHI, SILCHAR AND TINSUKIA REGIONS.