Dissolution of Partnership MCQs : This section focuses on the "Dissolution of Partnership" in Accountancy Class 12. These Multiple Choice Questions (MCQs) should be practiced to improve the Accountancy Class 12 skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
A partnership is a kind of business where a formal agreement between __________ people is made and agreed to be the co-owners, distribute responsibilities for running an organisation and share the income or losses that the business generates.
A. one
B. two
C. two or more
D. three
Question 2
The _____________ means a change of business relationship between partners.
A. dissolution of a firm
B. dissolution of a partnership
C. Both a and b
D. None of the above
Question 3
Partnership can be dissolved by?
A. an act of the partners
B. operation of law
C. an act of the employee
D. Both A and B
Question 4
Partnership can be dissolved only when some predefined provisions, according to the Partnership Act of 1932 are matched.
A. TRUE
B. FALSE
C. Can be true or false
D. Can not say
Question 5
The partnership agreement features?
A. names of both the parties or partners
B. purpose for which the partnership is founded
C. place of business
D. All of the above
Question 6
In the event of dissolution of partnership firm, the provision for doubtful debts is transferred to?
A. Realisation Account
B. Partners’ Capital Accounts
C. Sundry Debtors Account
D. None of the above
Question 7
On dissolution, if a partner undertakes to make payment of a liability of the firm, the account to be debited is:
A. Partner’s Capital Account
B. profit and Loss Account
C. Realisation Account
D. Cash Account
Question 8
At the dime of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to ?
A. Realisation Account
B. Creditors Account
C. Partners Capital Accounts
D. profit and Loss Account
Question 9
On dissolution, goodwill account is transferred to?
A. In the Capital Accounts of Partners
B. In the Debit of Realisation Account
C. In the Credit of Cash Accounts
D. In the Credit of Realisation Account
Question 10
At the time of dissolution of partnership firm, fictitions assets are transferred to :
A. Realisation Account
B. Capital Accounts of Partners
C. Cash Account
D. Partners Loan Account