Dissolution of Partnership Firm

24 solved questions from Class 12 Accountancy, each with the full working. Tap any question to see the step-by-step solution.

• 1 What is the primary topic or theoretical principle explored in 'Dissolution of Partnership Firm' (Class 12 ACCOUNTANCY)? medium MCQ Chapter Core Principle
• 2 Which key mechanism or analytical rule is highlighted in 'Dissolution of Partnership Firm'? medium MCQ Key Analytical Mechanism
• 3 What is the primary topic or principle explained in 'Dissolution of Partnership Firm' (Class 12 Accountancy)? medium MCQ Chapter Core Concept
• 4 Which key observation or fact is central to understanding 'Dissolution of Partnership Firm'? medium MCQ Key Fact & Mechanism
• 5 Why is the study of 'Dissolution of Partnership Firm' important for students of Class 12? medium MCQ Learning Significance
• 6 What is a common application or real-world example related to 'Dissolution of Partnership Firm'? medium MCQ Real World Application
• 7 What key takeaway should students retain after completing 'Dissolution of Partnership Firm'? medium MCQ Chapter Summary & Takeaway
• 8 During dissolution, partner P had given a loan of Rs. 40,000 to the firm at 12% per annum, payable within 6 months. The loan is written off at settlement and the partner’s capital account is adjusted. If P’s capital balance before adjustment is Rs. 80,000, what is the new balance in P’s capital account after settlement? medium 2 marks Adjustment of partner’s loan on dissolution
• 9 A partnership firm A & B is dissolved. The assets are Rs. 2,00,000 and liabilities are Rs. 80,000, both settled at book values. The capital balances are A: Rs. 70,000 and B: Rs. 50,000. No goodwill is involved. What cash amount will be paid to partner B on dissolution? easy MCQ 1 mark Settlement of capital on dissolution
• 10 A partnership firm M, N and O is dissolved on the death of partner O. The book values are: Cash Rs. 1,00,000; Debtors Rs. 80,000; Stock Rs. 60,000; Fixed assets Rs. 2,40,000; Creditors Rs. 1,20,000; Bank loan Rs. 80,000. The stock has a revaluation surplus of Rs. 30,000 (fair value exceeds book value). Capital balances: M – Rs. 1,50,000; N – Rs. 90,000; O – Rs. 1,20,000. Profit‑sharing ratio is M:N:O = 2:1:1. O is entitled to a bonus of 10% on his capital. No goodwill is due. Prepare a Statement of Affairs showing net assets available for distribution and compute the cash each partner will receive on dissolution after adjusting for the revaluation surplus and O’s bonus. hard 5 marks Statement of affairs and final settlement on dissolution
• 11 Partners X, Y and Z share profit in the ratio 3:2:1. On dissolution, goodwill is valued at Rs. 1,20,000 and is to be adjusted in the outgoing partners' capital accounts. Calculate the amount of goodwill to be credited to each partner’s capital account. medium 2 marks Adjustment of goodwill on dissolution
• 12 Partners A, B and C share profit in the ratio 4:3:2. On dissolution, goodwill is valued at Rs. 2,40,000 and is to be adjusted in the outgoing partners' capital accounts in the profit‑sharing ratio. How much goodwill will be credited to partner B’s capital account? medium MCQ 2 marks Adjustment of goodwill on dissolution
• 13 Partners D, E and F run a firm. Profit‑sharing ratio is D:E:F = 3:2:1. Capital balances are D – Rs. 1,20,000; E – Rs. 80,000; F – Rs. 1,00,000. At the time of dissolution, the firm’s assets and liabilities are: Cash Rs. 60,000; Debtors Rs. 50,000; Land (book value) Rs. 2,00,000; Plant & Machinery Rs. 1,20,000; Creditors Rs. 70,000; Bank loan Rs. 50,000. The land has a revaluation surplus of Rs. 40,000 (fair value exceeds book value). Partner F, who has died, is entitled to a bonus of 12% on his capital. No goodwill is due. Prepare a Statement of Affairs showing net assets available for distribution and compute the cash each partner will receive on dissolution after adjusting for the revaluation surplus and F’s bonus. hard 5 marks Revaluation surplus and bonus on capital
• 14 A partnership firm of two partners, Raj and Sita, is dissolved. The firm’s assets consist of cash Rs. 1,20,000, inventory Rs. 80,000 and furniture Rs. 50,000. Liabilities include a bank overdraft of Rs. 70,000 and creditors Rs. 30,000, all settled at book values. The capital balances are Raj Rs. 90,000 and Sita Rs. 60,000. No goodwill is payable. How much cash will be paid to Sita on dissolution? easy 2 marks Settlement of assets and liabilities
• 15 Partner R had given a loan of Rs. 50,000 to the firm at 10% per annum, repayable after 9 months. At dissolution the loan and the accrued interest are written off. R’s capital balance before adjustment is Rs. 1,10,000. What is the balance in R’s capital account after settlement? medium 2 marks Settlement of partner’s loan on dissolution
• 16 Partners P, Q and R share profit in the ratio 5:3:2. On dissolution, goodwill is valued at Rs. 1,80,000 and is to be adjusted in the outgoing partners’ capital accounts in the profit‑sharing ratio. How much goodwill will be credited to partner Q’s capital account? easy 2 marks Goodwill adjustment to capital accounts
• 17 Partners M, N and O share profit in the ratio 3:2:1. On dissolution, goodwill is valued at Rs. 2,00,000 and is to be adjusted in the outgoing partners’ capital accounts in the profit‑sharing ratio. Partner O is the outgoing partner, while M and N are incoming. How much goodwill will be credited to partner O’s capital account? hard 2 marks Goodwill adjustment to outgoing partners’ capitals
• 18 A partnership firm of partners X, Y and Z has the following assets and liabilities at the time of dissolution: Cash Rs. 80,000; Debtors Rs. 1,20,000; Stock Rs. 50,000; Machinery (book value) Rs. 1,80,000. Liabilities: Creditors Rs. 1,00,000; Bank loan Rs. 50,000. The machinery has a revaluation surplus of Rs. 30,000. The partners’ capital balances are X Rs. 2,00,000, Y Rs. 1,00,000 and Z Rs. 1,50,000. Profit‑sharing ratio is X:Y:Z = 3:2:1. Partner Z dies and is entitled to an 8% bonus on his capital. Prepare a Statement of Affairs showing net assets available for distribution and compute the cash each partner will receive on dissolution after adjusting for the revaluation surplus and Z’s bonus. hard 5 marks Statement of Affairs and bonus adjustment
• 19 Partner S had given the firm a loan of Rs. 60,000 at 15% per annum, repayable after 1 year. At the time of dissolution the loan and the accrued interest are written off. Partner S’s capital balance before adjustment is Rs. 1,50,000. What is the balance in S’s capital account after settlement? medium 3 marks Write‑off of loan and interest on dissolution
• 20 Partners D, E and F run a firm with profit‑sharing ratio 3:2:1. Capital balances are Rs. 1,80,000; Rs. 1,20,000; Rs. 1,50,000 respectively. At dissolution, the firm’s assets are Cash Rs. 2,00,000; Debtors Rs. 1,80,000; Stock Rs. 1,20,000; Machinery (book value) Rs. 2,40,000. Liabilities are Creditors Rs. 1,20,000; Bank loan Rs. 1,00,000. The machinery has a revaluation surplus of Rs. 60,000. Goodwill is Rs. 2,00,000 and will be adjusted in the outgoing partner’s capital account. Partner F is an outgoing partner and has died, entitled to a bonus of 15% on his capital. What cash amount will each partner receive on dissolution after all adjustments? medium 3 marks Cash distribution after goodwill and bonus
• 21 Partner O is an outgoing partner in a firm where goodwill is valued at Rs. 1,50,000 and is to be adjusted in the outgoing partners’ capital accounts in the profit‑sharing ratio 4:3:2. How much goodwill will be credited to O’s capital account? medium 2 marks Goodwill adjustment for outgoing partner
• 22 Partner T gave the partnership a loan of Rs. 50,000 at 8% per annum for 8 months. At the time of dissolution the loan and the accrued interest are written off. Partner T’s capital balance before adjustment is Rs. 1,20,000. What is the balance in T’s capital account after settlement? easy MCQ 1 mark Loan interest adjustment on dissolution
• 23 A partnership firm has the following at the time of dissolution: Cash Rs. 1,50,000; Debtors Rs. 2,00,000; Stock Rs. 1,00,000; Plant (book value) Rs. 3,00,000. Liabilities: Creditors Rs. 1,20,000; Bank loan Rs. 80,000. The plant has a revaluation surplus of Rs. 50,000. Partners A, B and C have profit‑sharing ratio 5:3:2 and capital balances Rs. 2,50,000; Rs. 1,50,000; Rs. 1,80,000 respectively. Partner C died and is entitled to a bonus of 10% on his capital. Prepare a Statement of Affairs and compute the cash each partner will receive on dissolution. hard 5 marks Statement of Affairs with revaluation and bonus
• 24 A partnership firm has partners I, J, K with profit‑sharing ratio 4:3:2. Capital balances before dissolution are I Rs. 3,00,000; J Rs. 1,80,000; K Rs. 1,20,000. Partner K has died and is entitled to a 12% bonus on his capital. The firm has no goodwill and no revaluation. Prepare the adjusted capital balance of K after the bonus. medium 3 marks Bonus on dying partner