Dissolution of a

Partnership Firm

. Accounting Treatment
es tll
e1,~og oan by the firm
As per CBSE Guidelines and Late
st NCEKI' Book
tt1et11ellt of l to a partner (appearing on the
assets side of th bal
foC sC
h )
e ance s . cet :
l, / £,itrJ:
Dr.
}~(114 1nank Alc
eash V
1,oan co Partner NC
'fo . . . b
. d value ofan asset is not. given, 1t 1s. to e presumed that it has not real· d
z. • If realize er has borne and/ or paid the .
realisation expenses, it should be stated 1se any amount.
.If a partll .

Multiple Choice Questions (MCQs)

the basis of the following data, how muc

h final payment will be made to a part
\. o:capital account of the partner was ner on firm's dissolution? Credit balance
'{S0 ,000. Share of loss on realization amounte
ohim was for fS,000: d to '{10,000. Firm's liability taken over by
(a) f32,000 (b) f48,000
(c) , 4o,ooo . . (d) f52,000
At
2 the time of dissolution of partnership firm, Journal entry for the settlement of loan
• advanced by the firm to a partner would be:
Journal
Date Particulan
(a) Bank Ale
Dr.
LF. Dr. Amt. <') Cr. Amt. <') l
To Loan to Partner Ale
(b) Loan to partner A/c
To Bank Ale Dr.
(c) Realization A/c
To Loan to Partner Ale Dr.
(d) None of these /

3. Retirement or death of a partner will crea

te a situation for the continuing partners
(a) Dissolution of Partnership , which is known as: :
(b) Dissolution of partnership firm
(c) Winding up of business
(d) None of the above
©Rohan, Mohan and Sohan were partners
loan to the firm will be: sharing profits equally. At the time of
dissolution of the partnership firm, Roh
aI
(a) credited to Rohan's Capital Account.
(b) debited to Realisation Account.
(c) .credited to Realisation Account.
5 (d) credited to Bank Account.
• ;'h)ich_of the following does not resu
,a D1ssol • f lt into reconstitution of a firm ?
~) uuon o partnership firm.
(b) Dissolution of partnersh'1p.
c Ilcach of panner.
(d) Change in profit-sharing-ratio of exis
ting partners.