Class Xii Accountancy 4.dissolution of Partnership Firm Competency - Based Test Items

Competency Based Test items
Class : XII
SUBJECT: ACCOUNTANCY
NAME OF CHAPTER: DISSOLUTION OF PARTNERSHIPFIRM
Q.N LEARNING QUESTIONS MARKS

o OUTCOME/
ASSESMENT
OBJECTIVE
1. LO :Able to X ,Y and Z were partners sharing profits and losses in the 1
describe ratio of 3:2:1.At the time of Dissolution of the partnership
treatment of firm Y’s Loan will be
Loan by a (i) Debited to Realisation Account
partner (ii) Credited to Bank Account
AO: (iii) Credited to Y’s Capital Account
Discriminate (iv) Credited to Realisation Account
between
inside
liability out
side liability
2. LO : Assertion (A):Realisation account is prepared at the time of 1
Understan- dissolution of partnership firm
ding Reasoning(R): Dissolution of firm includes selling of assets
AO: and payment of liabilities. At last paying partners or
Discriminate recovering cash.
a) (A) is correct but (R) is wrong.
b) Both (A) and (R) are correct ,but (R ) is not correct explanation of
(A)
c) Both (A) and (R) are incorrect
d) Both (A) and (R) are correct ,and (R ) is correct explanation of (A)
3. LO:Ability to On the Dissolution of a firm Assets were of Rs.58,500 .X one 1
Solve of the took some assets at 36,000 which was 10% less then
numerical Book Value took remaining assets at 80% of book value
problems .Realisation account is to be credited with
AO:To assess (a) Rs.54,000
the learners (b) Rs.42,000
ability to (c) Rs.36,000
apply the (d) Rs.50,800
concept in
real life
4. LO:Ability to Furniture of Rs.50,000 were not shown in the books .One of 1
Solve the creditor took these furniture in full settlement of his debt
numerical Rs.55,000 . How much amount will be payable to creditor
problems (a) Rs.5000
AO:To assess (b) Rs.60,000
the learners (c) Rs. 50,000
ability to (d) NIL
apply the
concept in
real life
5. LO In case of Dissolution of firm ,Goodwill will be transferred to 1
:Understand (a)The credit of cash A/c
ing of (b)Debit side of partners Capital A/c
concept (c) Debit of Realisation A/c
AO:Assessing (d)Credit side of Realisation A/c
Application
6. LO:Accountin Realisation expenses of Rs.7,500 were paid by firm on behalf 1
g treatment of Sohan ,a Partner .Which of the following journal entry will
of be passed Rs. Rs.
Realisation (i) Realisation A/c Dr. 7,500
Expenses To Cash /Bank 7,500
AO: To assess (ii) Realisation A/c Dr. 7,500
right entry To Sohan’s Capital A/c 7,500
can be (iii) Sohan ‘Capital A/c Dr. 7,500
passed To Cash /Bank 7,500
(iv) None of these
Read the following hypothetical situation and answer

question number 7 to 10
Sita and Geeta were partners in a firm sharing profit and
losses in the ratio of 3:2 .They decided to dissolved their firm
on 31.3 .2023 .On this date ,the Balance Sheet of the firm
,apart from realisable assets and outside liabilities are as
follows:
Sita ‘s Capital Rs. 30,000 (Cr.) ,Geeta’s Capital Rs. 15,000 (Dr.)
Advertising Suspense 8,000, Sita’s Loan to the firm 7,500
LO :Able to General Reserve Rs.3,500 .On dissolution of firm .(i) Sita was
describe paid Rs.7,000 by the firm in full settlement of her loan (ii) The
meaning of dissolution expenses of Rs.500 were paid by the firm on
dissolution of behalf of Geeta, she had to bear these expenses (iii) The
firm . unrecorded assets of Rs.1,000 was taken over by Geeta while
AS: To assess Sita discharged an unrecorded liability of Rs.1,500 (iv) There
the was loss on realisation of assets and after payment of
application liabilities Rs.25000.
of concept
learned
7. The amount of Advertisement suspense to be transferred to 1
partners ‘ Capital Account
-Do- (i)Rs.4,000 each (II) Rs. 4,800 Sita and Rs.3,200 Geeta
(iii) Rs.3,200 Sita and Rs.4,800 Geeta (iv) None of these
8. General Reserve will be 1
-Do- (i)Credited to Realisation Account (ii) Debited to Realisation
Account (iii) Credited to Partners Capital Account (iv) None
9. Unrecorded Liabilities paid by Sita will be 1
-Do- (i)Credited to Sita’s Capital (ii) Debited to Realisation
(iii) Both (i) and (ii) (iv) Shown the Bank A/c
10. Profit in payment of Sita’s Loan will be transferred to 1
-Do- (i)Sita’s Capital A/c (ii) Realisation A/c
(iii) Bank A/c (iv) None of these
11. LO :Explain Pass journal entries in the following cases on Dissolution of a 3
the firm :
treatment of (i)One of the Partner A agreed to perform work of dissolution
Realisation for a remuneration of Rs.1,000 .He also agreed to bear
expenses in dissolution expenses .Actual expenses Rs.1,100 were paid by
different A.
cases (ii)Dissolution expenses were Rs.16,000 .Out of these
AO:To assess expenses 6,000 were to be borne by the firm and balance by
the Mohan ,a partner Rs.16,000 are paid by the firm.
understan- (iii)K ,one of the partner was appointed to perform
ding dissolution work for that he was given a commission of 4,500
.K agreed to bear dissolution expenses .Actual expenses
2,000 were paid by the firm.
12. LO: Payment State the order of payment of the following ,in case of 3
in the case of dissolution of Partnership Firm:
Dissolution (i) To each partner proportionately what is due to him
of Firm .First on account of capital and
outside (ii) To each partner proportionately what is due to
liabilities him/her from the firm for advances as distinguished
AO: Assess from capital example partners loan
students (iii) For the debt of the firm to third parties
understandin
g
13. LO: To find Answer the following questions 3
out total (i)A,B and C are partners sharing profit and losses in the ratio
assets ,Loss of their capital which was 1:2:3 .If total Assets of firm are
on 6,00,000 and total liabilities are 1,20,000.What will be
realisation capitals A,B and C.
,Amount (ii)If total Debtors appearing in the Balance Sheet Rs.25,000
realised on and provision for Doubtful Debts appear at Rs.750 .Calculate
sale of amount to be received from Debtors ,if bad debt amount to
assets. Rs.5,000 and remaining debtors are realized at a discount of
AO: To assess 5%.
Analytical (iii)On Dissolution of a firm ,its Balance Sheet shows total
skill of amount payable to suppliers Rs.25,000 .Total Capital
learner Rs.24,000 ,Cash Balance 1,500 .If Assets realized 12% less
.What will be the loss on Realisation .
14. LO: Hari was thinking that dissolution of Partnership and 3
Dissolution Dissolution of firm is same thing .Ram explained him both
of firm are different .Can you tell what are major difference in
means between Dissolution of Partnership and Dissolution of
closure of Partnership Firm? Explain any three differences.
firm
AO: assessing
the
knowledge
15. LO: Able to X and Y were partners in a firm sharing Profit and losses in 4
recognise the ratio of 3:2 .They had disputes on number of matters
the .Which were beyond their control. So they decided to
treatment in dissolve the firm on 31st March 2023 . X took the
dissolution of responsibility to realise assets and to pay liabilities .He was
partnership paid Rs.2,500 as commission for that. Following points were
AO:To assess agreed upon :
the (i)Account payable, appeared at Rs.10, 000, were payable
application after 2 months .They were paid immediately at a discount of
of concept 9%.p.a.
(ii)X took over furniture of book value 22,500 at a profit of
30% for cash
(iii) Realisation expenses were 1,500 which were paid by Y .
On the basis of above information answer the following
questions
(i) Amount paid to creditor?
(ii) Journal entry for realistion expenses will be ?
(iii) For realisation of furniture, the account debited is?
(iv) For commission paid to X …………..is debited and
…….is credited.
16. LO: Able to Hari and Mohan after completion of Graduation started 4
recognise MSME firm to produce electronic game instrument .Due to
the online marketing and fall in demand they started suffering
treatment in huge losses . So they decided to dissolve the firm. After
dissolution of transferring assets (other than cash) and outside
partnership R’s liabilities to realisation account you are given the
AO:To assess following information:
the (a)Rahul a creditor of Rs.2,00,000 accepted land valued at
application Rs.3,50,000 and paid Rs.1,50,000 to the firm.
of concept (b)Krishna ,a second creditor for Rs.52,500 accepted
Rs.45,000 in cash and investments of Rs.7,000 in full
settlement of his account .
(c) Govinda a third creditor amounting to Rs. 37,500 accepted
stock of the book value Rs.30,000 for Rs.22,500 and balance
paid to him by cheque.
(d)Loss on dissolution was 22,500.
Pass journal entries.
17. LO: Able to The balance Sheet of Shyam and Hari as at 31/3/2023 was as 4
recognise follows :
the Liabilities Amount Assets Amount
treatment in Creditors 2,500 Cash 700
dissolution of Investment Debtors 2,350
partnership Fluctuation Fund Stock 1,150
AO:To assess Capitals 150 Furniture 25
the Shyam 1,750 Property 1,000
application Hari 1,375 Investment 550
of concept 3,125
5,775 5,775
The partners shared profits and losses in the ratio of 3:2
The Partnership was dissolved on the above date .Following
adjustment is to be made .
(i) Property realised 75%
(ii) Bad debt Rs.250
(iii) Stock realised Rs.1,262
(iv) Creditors allowed a discount 2%
(v) Expenses on Dissolution Amounted to Rs.37
You are required to prepare realisation account.
18. LO: Able to Abdul and Karim were partners in a firm sharing profits and 6
recognise losses in the ratio of 4:1 .On 31st March 2023 the firm was
the dissolved .After the transfer of Assets (Excluding Cash and
treatment in Bank balances) and third party liabilities to the Realisation
dissolution of Account the following information provided :
partnership (a) Machinery 0f 35,000 sold for 34,000 by broker and
AO:To assess brokers ‘commission was Rs.1,000
the (b) Abdul ‘s loan amounting to 17,500 was paid .
application (c) Furniture of 40,000 ,Karim took over 50% of the furniture
of concept at a discount of 20% while remaining furniture was sold
at a profit of 30% on cost
(d) An Unrecorded liability of Rs.1,500 was paid off.
(e) Profit and Loss Account showed a debit balance of
Rs.28,000 .
(f) Realisation expenses amounted to Rs.1,000 were paid by
Abdul.
Pass necessary journal entries for the above transaction.
19. LO: Able to A and B were partners in a firm sharing profits and losses in 6
st
recognise the ratio of 3:2.The Balance Sheet of the firm on 31 March
the ,2023 was as follows
treatment in Liabilities Amount Assets Amount
dissolution of S.Creditors 1,60,000 Debtor 54,000
partnership B’s Wife’s Stock 1,00,000
AO:To assess Loan 40,000 Bank 3,44,000
the Capitals Furniture 4,40,000
application A 3,50,000
of concept B 3,88,000 7,38,000
9,38,000 9,38,000
Firm was dissolved on above date .assets were sold and
liabilities were paid off
Debtors realized 52,000 .Stock was taken over by B ‘s Wife’s
loan was paid off along with interest Rs.4,000 .B took away
stock at 48,000 .Expense on Realisation was Rs.10,000. 50%
of the Furniture was taken over by A at 20% less then book
value. The remaining Furniture was sold for 2, 10,000.
Prepare Realisation Account and Partners Capital Account .
20. LO: Able to X,Y and Z were partners sharing profit and losses in the ratio 6
recognise of 2:1:1 .Their Balance Shet as on 31. 3.2023 was as follows :
the Balance Sheet of X,Y and Z as at 31.3.2023
treatment in Liabilities Amount Assets Amount
dissolution of Capitals Furniture 32,000
partnership X-40,000 Investment 30,000
AO:To assess Y-20,000 Stock 20,000
the Z-10,000 70,000 Debtors 10,000
application Z’s Loan 12,000 Bank 20,000
of concept S.Creditors 30,000
1,12,000 1,12,000
On the above date the firm was Dissolved
(i) Furniture of Rs.30,000 were given to creditors in full
settlement of their claim and remaining furniture
was sold for Rs.1,000
(ii) Investment realized Rs.29,000
(iii) Stock was sold for 18,000
(iv) Debtors realized 8,000
(v) Realisation Expenses were Rs.1,000
Prepare Realisation Account
ANSWERS
Q.No ANSWER
1. (ii)
2. (d)
3. (d)
4. (d)
5. (c)
6. (iii)
7. (ii)
8. (iii)
9. (i)
10. (ii)
11. (i) Realisation A/c Dr.1,000
To A’s Capital A/c 1,000
(ii)Realisation A/c Dr. 6,000
Mohan’s Capital Dr.10,000
To Cash /Bank 16,000
(iii) (a) Realisation A/c Dr 4,500
To K’s Capital 4,500
(b) K’s Capital A/c Dr 2,000
To Cash /Bank A/c 2,000
12. (iii) ,(ii),(i)

13. (i) A-80,000 ,B- 1,60,000 ,C-240,000
(ii) Rs.19,000
(iii)Rs.5,700
14. S. Basis Dissolution of Dissolution of Partnership
No. Partnership Firm
1. Meaning It means a change in It refers to closure of the
existing agreement firm
between partners .The
firm continues its
business.
2. Continuation The firm continues its Business of the firm
of the business comes to an end
business
3. Economic Economic relationship Economic relationship
Relation between the partners between the partners
continues though in a comes to an end
changed form
15. (i)9,850
(ii)Realisation A/c Dr 1,500 To Y’s Capital 1,500
(iii)Bank /Cash
(iv)Realistion ,Y ‘Capital
16. Journal Entries
Date Particulars LF Dr.(Rs.) Cr.(Rs.)
(i) Cash /Bank A/c Dr 1,50,000
To Realisation A/c 1,50,00
(Being cash received from creditors)
(ii) Realisation A/c Dr. 45,000
To Cash /Bank A/c 45,000
(Being part payment made to
creditor)
(iii) Realisation A/c Dr. 15,000
To Bank A/c 15,000
(Being Part payment made to
creditor)
(iv) Hari’s Capital A/c Dr. 10,500
Mohan’s Capital A/c Dr. 12,000
To Realisation A/c 22,500
(Being Loss on realisation transferred
to partners ‘ Capital Account)
17. Realisation Account
Particulars Amount Particulars Amount
To Sundry Assets By Creditors 2,500
Debtors 2,350 By Investment
Stock 1,150 Fluctuation Fund 150
Furniture 25 By Bank 4687
Property 1,000 By Loss
Investment 550 5,075 Shyam’s Capital 135
To Bank 2,450 Hari’s Capital 90 225
To Bank 37
7,562 7,562
18. Journal
Date Particular L.F. Dr. Cr.
31.3.23 Bank A/c Dr. 33,000
(a) To Realisation A/c 33,000
(Being Machinery realized)
(b) Abdul’s Loan A/c Dr. 17,500
To Bank A/c 17,500
(Being partners’ loan paid off)
(c) Karims ’Capital A/c Dr. 16,000
To Realistion A/c 16,000
(Being Furniture taken over by
Karim at 20% discount)
Bank A/c Dr. 26,000
To Realisation A/c 26,000
(Being remaining furniture sold at
30% profit)
(d) Realisation A/c Dr. 1,500
To Bank A/c 1,500
(Being unrecorded liability paid off)
(e) Abdul ‘Capital A/c Dr. 22,400
Karim’s Capital A/c Dr. 5,600
To Profit and Loss A/c 28,000
(Being Debit balance of Profit and
Loss Transferred to Partners’Capital)
(f) Realisation A/c Dr. 1,000
To Abdul’s Capital A/c 1,000
(Being Realisation Expenses Paid by
Abdul)
19. Realisation Account
Particular Amount Particular Amount
To Debtor 54,000 By B’s wife’s Loan 40,000
To Stock 1,00,000 By Sundry Creditors 1,60,000
To Furniture 4,40,000 By Bank
To Bank 1,60,000 Debtors 52,000
To Bank 44,000 Furniture 2,10,000 2,62,000
To Bank 10,000 By A’s Capital 1,76,000
By B’s Capital 58,000
By loss transferred to
partners ‘Capital
A 67,200
B 44,800 1,12,000
8,08,000 8,08,000
Partners ‘ Capital Account
Particulars A B Particular A B
To Realisation 1,76,000 By balance b/d 3,50,000 3,88,000
To Realisation 58,000
To Realisation 67,200 44,800
To Bank 1,06,800 2,85,200
3,50,000 3,88,000 3,50,000 3,88,000
20. Realisation Account of X,Y and Z
Particulars Amount Particulars Amount
To Sundry Assets By Sundry Creditors 30,000
Furniture 32,000 By Bank
Investment 30,000 Furniture 1,000
Stock 20,000 Investment 29,000
Debtors 10,000 92,000 Stock 18,000
To Bank 1,000 Debtors 8,000 56,000
By Loss on Realisation
X’s Capital 3,500
Y’s Capital 1,750
Z’s Capital 1,750 7,000
93,000 93,000
As Per Revised
CBSE Curriculum
2023-24
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Class Xii Accountancy 4.dissolution of Partnership Firm Competency - Based Test Items

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Class Xii Accountancy 4.dissolution of Partnership Firm Competency - Based Test Items

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Competency Based Test items

NAME OF CHAPTER: DISSOLUTION OF PARTNERSHIPFIRM

Q.N LEARNING QUESTIONS MARKS

Read the following hypothetical situation and answer

12. (iii) ,(ii),(i)

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