Chapter Test for Subject other than Languages R. No.

5 (4C (ii))
Day and Date: _______________ Test No- 6
Class: 12th Sub.: Accountancy
Chapter Name: Dissolution of Partnership Firm Chapter No. 6
Time: 30 Minutes M.M.: 15
General Instructions:
Read the following instructions carefully.
(i) There are Five Sections and 7 questions in this question paper.
(ii) Section A: Q. No. 1 to 3 are very short answer type question having one mark each.
(iii) Section B: Q. No. 4is short answer questions and carrying 2 marks.
(iv) Section C: Q. No. 5 is short answer questions and carrying 3 marks.
(v) Section D: Q. No. 6 is long answer question carrying 4 marks.
(vi) Section E : Q. No. 7 is Case Study Based Question carrying 3 marks.

SECTION-A
The following questions, Q.No.1 – 3 are Very Short Answer Type 1×3=3
1. Realisation account is a ________ account.
(a) real
(b) personal
(c) nominal
(d) cash
2. At the time of dissolution of a partnership firm _______ account is prepared.
(a) revaluation
(b) realisation
(c) profit and loss
(d) trading
3. At the time of dissolution of a partnership firm, all assets (except fictitious) are transferred to _______
account.
(a) realisation
(b) revaluation
(c) capital
(d) loan

SECTION-B
Q.No.4 is Short Answer Type 1×2=2
4. (i) Bobby’s sister’s loan of Rs 20,000 was paid off along with interest of Rs 2,000.
(ii) Kartik’s loan of Rs 12,000 was settled at Rs 12,500.

SECTION-C
Q.No.5 is Short Answer Type II 1×3=3
5. Ankit, Bobby and Kartik were partners in a firm sharing profits in the ratio 4:3:3. The firm was
dissolved on 31-3-2018. Pass the necessary Journal entries for the following transactions after various
assets (other than cash and bank) and third party liabilities had been transferred to Realisation account.
 (i) The firm had stock of Rs 80,000. Ankit took over 50% of the stock at a discount of 20% while the
remaining stock was sold off at a profit of 30% on cost.
(ii) A liability under a suit for damages included in creditors was settled at Rs 32,000as against only Rs
13,000 provided in the books. Total creditors of the firm were Rs 50,000.
(iii) Bobby’s sister’s loan of Rs 20,000 was paid off along with interest of Rs 2,000.

SECTION-D
Q.No.6 is Long Answer Type 1×4=4
6. E, F and G were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On March 31, 2017, their firm
was dissolved. On the date of dissolution, the Balance Sheet of the firm was as follows:

F was appointed to undertake the process of dissolution for which he was allowed a remuneration of Rs
5,000. F agreed to bear the dissolution expenses. Assets realized as follows:
(i) The Land & Building was sold for Rs 1,08,900.
(ii) Furniture was sold at 25% of book value.
(iii) Machinery was sold as scrap for Rs 9,000.
(iv) All the Debtors were realized at full value.
Creditors were payable on an average of 3 months from the date of dissolution. On discharging the
Creditors on the date of dissolution, they allowed a discount of 5%. Pass necessary Journal entries for
dissolution in the books of the firm.

SECTION-E
Q. No. 7 is Case Study-Based Question 1×3=3
7. Ankit, Bobby and Kartik were partners in a firm sharing profits in the ratio 4:3:3. The firm was
dissolved on 31-3-2018. Pass the necessary Journal entries for the following transactions after various
assets (other than cash and bank) and third-party liabilities had been transferred to Realisation account.
(i) The firm had stock of Rs 80,000. Ankit took over 50% of the stock at a discount of 20% while the
remaining stock was sold off at a profit of 30% on cost.
(ii) A liability under a suit for damages included in creditors was settled at Rs 32,000as against only Rs
13,000 provided in the books. Total creditors of the firm were Rs 50,000.
(iii) Bobby’s sister’s loan of Rs 20,000 was paid off along with interest of Rs 2,000.