CBSE-CLASS-XII SERIES Accountancy
Dissolution Of Partnership Firms
20 previous year questions.
Volume: 20 Ques
Yield: Medium
High-Yield Trend
17
2025 3
2024 Chapter Questions 20 MCQs
01
PYQ 2024
medium
accountancy ID: cbse-cla
On dissolution of a partnership firm, if realisation expenses are paid by the firm on behalf of a partner, then such expenses are debited to which of the following account:
1
Realisation Account
2
Partner’s Capital Account
3
Partner’s Loan Account
4
Bank Account
02
PYQ 2024
medium
accountancy ID: cbse-cla
Pawan, a partner, was appointed to look after the process of dissolution of the firm for which he was allowed a remuneration of rupee 75,000. Pawan agreed to bear the dissolution expenses. Actual dissolution expenses rupee 60,000 were paid by Pawan. Pawan’s capital account will be credited by:
1
rupee 75,000
2
rupee 60,000
3
rupee 15,000
4
rupee 10,000
03
PYQ 2024
medium
accountancy ID: cbse-cla
Assertion (A): In a partnership firm, the private assets of the partners can also be used to pay off the firm’s debts.
Reason (R): The liability of the partners for acts of the firm is limited.
Choose the correct option from the following:
Reason (R): The liability of the partners for acts of the firm is limited.
Choose the correct option from the following:
1
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
2
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3
Assertion (A) is false, but Reason (R) is true.
4
Assertion (A) is true, but Reason (R) is false.
04
PYQ 2025
medium
accountancy ID: cbse-cla
In the event of dissolution of a partnership firm, the order of payment of losses including deficiencies of capital shall be:
1
(i) First out of profits, (ii) Next by the partners individually in their profit sharing ratio, (iii) Lastly, if necessary, out of capital of partners.
2
(i) First out of capital of partners, (ii) Next out of profits, (iii) Lastly, if necessary, by the partners individually in their profit sharing ratio.
3
(i) First by the partners individually in their profit sharing ratio, (ii) Next out of profits, (iii) Lastly, if necessary, out of capital of partners.
4
(i) First out of profits, (ii) Next out of capital of partners, (iii) Lastly, if necessary, by the partners individually in their profit sharing ratio.
05
PYQ 2025
medium
accountancy ID: cbse-cla
White, Shaun and Todd were partners in a firm sharing profits and losses equally. Shaun’s wife had advanced a loan of ₹ 1,00,000 to the firm. The firm was dissolved. Shaun’s wife’s loan had already been transferred to Realisation account. The account credited to discharge Shaun’s wife’s loan will be :
1
Shaun’s capital account
2
Bank account
3
Realisation account
4
Shaun’s loan account
06
PYQ 2025
medium
accountancy ID: cbse-cla
Madhur and Neeraj were partners in a firm sharing profits and losses in the ratio of 3 : 2. The Balance Sheet as at 31st March, 2024 was as follows: Balance Sheet of Madhur and Neeraj as at 31st March, 2024
The firm was dissolved on the above date and the following transactions took place:
Machinery was taken over by creditors in full settlement of their account.
Investments were taken over by Neeraj at \u20b9 5,00,000.
One of the debtors of \u20b9 1,00,000 was untraceable. Remaining debtors were realised at 10% less.
Stock was taken over by Madhur at 50% discount.
Realisation expenses amounting to \u20b9 1,00,000 were paid by Madhur.
Prepare Realisation Account.
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals: | Machinery | 7,00,000 | |
| Madhur | 9,00,000 | Investments | 4,00,000 |
| Neeraj | 8,00,000 | Debtors | 11,00,000 |
| Creditors | 6,00,000 | Stock | 2,00,000 |
| Bills Payable | 2,00,000 | Cash at Bank | 1,00,000 |
| Total | 25,00,000 | Total | 25,00,000 |
Machinery was taken over by creditors in full settlement of their account.
Investments were taken over by Neeraj at \u20b9 5,00,000.
One of the debtors of \u20b9 1,00,000 was untraceable. Remaining debtors were realised at 10% less.
Stock was taken over by Madhur at 50% discount.
Realisation expenses amounting to \u20b9 1,00,000 were paid by Madhur.
Prepare Realisation Account.
07
PYQ 2025
medium
accountancy ID: cbse-cla
On the dissolution of the partnership firm of Raman, Hari and Suresh, realisation expenses were paid by a debtor of on behalf of the firm. The remaining amount was received from him along with interest of for delayed payment. Realisation Account will be ___________ by ___________.
1
debited,
2
credited,
3
debited,
4
credited,
08
PYQ 2025
hard
accountancy ID: cbse-cla
Madhavan, Chatterjee and Pillai were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. On 31stMarch, 2024, their Balance Sheet was as follows :
On the above date, the firm was dissolved and the following transactions took place :
Debtors were taken over by the creditors in full settlement of their claim.
Madhavan agreed to pay Mrs. Madhavan’s loan.
50% of the stock was taken over by Chatterjee at 10% less than the book value. The remaining stock was sold at a profit of 20%.
Land and Building was taken over by Pillai for and Plant and Machinery was sold as scrap for .
Realisation expenses were paid by cheque.
Prepare Realisation Account.
Balance Sheet of Madhavan, Chatterjee and Pillai as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Creditors | 1,10,000 | Cash at Bank | 4,05,000 |
| Outstanding Expenses | 17,000 | Stock | 2,20,000 |
| Mrs. Madhavan’s Loan | 2,00,000 | Debtors | 95,000 |
| Chatterjee’s Loan | 1,70,000 | Less: Provision for Doubtful Debts | (5,000) |
| Capitals: | Madhavan – 2,00,000 | Land and Building | 1,82,000 |
| Chatterjee – 1,00,000 | Plant and Machinery | 1,00,000 | |
| Pillai – 2,00,000 | |||
| Total | 9,97,000 | Total | 9,97,000 |
Debtors were taken over by the creditors in full settlement of their claim.
Madhavan agreed to pay Mrs. Madhavan’s loan.
50% of the stock was taken over by Chatterjee at 10% less than the book value. The remaining stock was sold at a profit of 20%.
Land and Building was taken over by Pillai for and Plant and Machinery was sold as scrap for .
Realisation expenses were paid by cheque.
Prepare Realisation Account.
09
PYQ 2025
medium
accountancy ID: cbse-cla
When realisation expenses are paid by a partner on behalf of the firm, then :
1
Realisation A/c is debited
2
Cash A/c is credited
3
Partner’s Capital A/c is debited
4
Partner’s Capital A/c is credited
10
PYQ 2025
medium
accountancy ID: cbse-cla
Pass necessary journal entries for the following transactions on the dissolution of the partnership firm of Mansha and Rajiv after various assets (other than cash) and external liabilities have been transferred to Realisation Account: (i) Mansha’s loan of ₹ 18,000 was settled by giving her an unrecorded furniture of ₹ 20,000.
(ii) Machinery of the book value of ₹ 80,000 was sold at a loss of 10%.
(iii) A creditor of ₹ 40,000 accepted cash ₹ 21,000 and stock of the book value of ₹ 25,000 in full settlement of his claim.
(iv) Bank loan of ₹ 1,00,000 was paid along with interest of ₹ 10,000.
(v) Investments of the face value of ₹ 52,000 were sold in the open market for ₹ 63,000 for which a commission of ₹ 2,000 was paid to the broker.
(vi) Profit and Loss Account balance of ₹ 30,000 appeared on the asset side of the balance sheet.
(ii) Machinery of the book value of ₹ 80,000 was sold at a loss of 10%.
(iii) A creditor of ₹ 40,000 accepted cash ₹ 21,000 and stock of the book value of ₹ 25,000 in full settlement of his claim.
(iv) Bank loan of ₹ 1,00,000 was paid along with interest of ₹ 10,000.
(v) Investments of the face value of ₹ 52,000 were sold in the open market for ₹ 63,000 for which a commission of ₹ 2,000 was paid to the broker.
(vi) Profit and Loss Account balance of ₹ 30,000 appeared on the asset side of the balance sheet.
11
PYQ 2025
hard
accountancy ID: cbse-cla
Pass the necessary journal entries for the following transactions on the dissolution of a partnership firm of Vibha and Ajit after various assets (other than cash) and external liabilities have been transferred to Realisation Account:}
Creditors worth ₹ 46,000 accepted ₹ 9,000 cash and furniture of ₹ 32,000 in full settlement of their claim.
The firm had stock of ₹ 20,000. Ajit took over 40% of the stock at a discount of 10% while the remaining stock was sold for ₹ 18,000.
Vibha was appointed to look after dissolution work for which she was allowed a remuneration of ₹ 16,000. Vibha agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 15,000 were paid by Vibha.
Ajit’s loan of ₹ 45,000 was settled at ₹ 42,000.
A machine which was not recorded in the books was taken over by Vibha at ₹ 23,000, whereas its expected value was ₹ 28,000.
The firm had a debit balance of ₹ 20,000 in the Profit and Loss Account on the date of dissolution.
Creditors worth ₹ 46,000 accepted ₹ 9,000 cash and furniture of ₹ 32,000 in full settlement of their claim.
The firm had stock of ₹ 20,000. Ajit took over 40% of the stock at a discount of 10% while the remaining stock was sold for ₹ 18,000.
Vibha was appointed to look after dissolution work for which she was allowed a remuneration of ₹ 16,000. Vibha agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 15,000 were paid by Vibha.
Ajit’s loan of ₹ 45,000 was settled at ₹ 42,000.
A machine which was not recorded in the books was taken over by Vibha at ₹ 23,000, whereas its expected value was ₹ 28,000.
The firm had a debit balance of ₹ 20,000 in the Profit and Loss Account on the date of dissolution.
12
PYQ 2025
medium
accountancy ID: cbse-cla
Pass necessary Journal entries for the following transactions on the dissolution of a firm after the transfer of assets and liabilities has been made to Realisation Account:
(i) Debtors of ₹ 60,000; provision for doubtful debts ₹ 2,000. ₹ 56,000 were collected.
(ii) Creditors were ₹ 80,000; settled at ₹ 76,000.
(i) Debtors of ₹ 60,000; provision for doubtful debts ₹ 2,000. ₹ 56,000 were collected.
(ii) Creditors were ₹ 80,000; settled at ₹ 76,000.
13
PYQ 2025
medium
accountancy ID: cbse-cla
Arushi, Vivaan and Mitali were partners in a firm. On 31st March 2024, the firm was dissolved. On that date, the firm had debtors of and provision for doubtful debts of were existing in the books. Debtors of proved bad and full amount was realised from the remaining debtors. The amount realised from debtors was:
1
2
3
4
14
PYQ 2025
medium
accountancy ID: cbse-cla
Lalit and Madan were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (other than cash) and third-party liabilities to Realisation Account, the following transactions took place: \begin{itemize}
\item[(i)] The firm had stock of \rupee2,00,000. 40% of this stock was taken over by a creditor of \rupee1,00,000 in full settlement of his claim. The remaining stock was sold at a loss of 10%.
\item[(ii)] The remaining creditors were paid \rupee2,10,000.
\item[(iii)] Plant and Machinery of \rupee5,00,000 were accepted by Mrs. Madan against the settlement of her loan of \rupee5,40,000.
\item[(iv)] Debtors of \rupee3,50,000 were sold to a debt collection agency who charged a commission of \rupee25,000.
\item[(v)] Investments of \rupee1,00,000 were taken over by the partners in their profit-sharing ratio.
\item[(vi)] Expenses of dissolution were \rupee8,000.
\end{itemize} Pass necessary journal entries for the above transactions in the books of the firm.
15
PYQ 2025
medium
accountancy ID: cbse-cla
Piyush and Mita were partners in a firm sharing profits and losses in the ratio of 5 : 2. On 31st March, 2024, the firm was dissolved. After transferring various assets (other than cash) and third-party liabilities to the Realisation Account, the following transactions took place:
(i) Investments whose book value was ₹50,000 were realised at 70%.
(ii) Unrecorded liabilities of ₹21,000 were paid.
(iii) Piyush took over stock worth ₹78,000 at ₹65,000.
Pass necessary journal entries for the above transactions in the books of Piyush and Mita.
(i) Investments whose book value was ₹50,000 were realised at 70%.
(ii) Unrecorded liabilities of ₹21,000 were paid.
(iii) Piyush took over stock worth ₹78,000 at ₹65,000.
Pass necessary journal entries for the above transactions in the books of Piyush and Mita.
16
PYQ 2025
medium
accountancy ID: cbse-cla
Rishi, Manu and Komal were partners in a firm sharing profits and losses in the ratio of 3 : 4 : 5. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (except cash in hand and cash at bank) and third party liabilities to realisation account, the following transactions took place:
(i) A creditor of ₹2,00,000 took over an old machine for ₹70,000 that had been completely written off and his balance was settled at a discount of 10%.
(ii) Remaining creditors of ₹8,00,000 agreed to take over stock of ₹6,00,000 in full settlement of their claim.
(iii) The remaining stock of ₹3,00,000 was sold at a loss of 30%.
(iv) Dissolution expenses amounting to ₹90,000 were paid by Komal.
(v) Saransh, an old customer whose account for ₹40,000 was written off as bad debt in the previous year, paid ₹36,000.
(vi) Loss on dissolution amounted to ₹2,40,000.
Pass necessary journal entries for the above transactions to close the books of Rishi, Manu and Komal at the time of dissolution of the firm.
17
PYQ 2025
medium
accountancy ID: cbse-cla
Tushar, Mehta and Ghosh were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 4. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (other than cash in hand and cash at bank) and external liabilities to realisation account, the following transactions took place: \begin{enumerate}
\item There was a debit balance of ₹77,000 in the profit and loss account, which was transferred to the capital accounts of the partners. \item The firm had investments of ₹4,00,000 whose market price was ₹4,20,000. The investments were taken over by the partners in their profit sharing ratio at market price. \item The book value of the debtors was ₹8,00,000 and the provision for bad debts was ₹40,000. Debtors were realised at 90% of the book value and a debtor of ₹5,000 which had been previously written off as bad debt paid the full amount. \item Ram Lal, a creditor of ₹2,00,000 took over furniture of book value of ₹2,50,000 in full settlement of his claim. The remaining creditors allowed a discount of 10% on their claim of ₹2,20,000. \item Expenses on realisation amounted to ₹50,000 which were paid by the firm. \item Gain on realisation amounted to ₹42,000. \end{enumerate} Pass necessary journal entries for the above transactions in the books of the firm.
18
PYQ 2025
medium
accountancy ID: cbse-cla
Calculate the Operating Ratio from the following information:
| Particulars | Amount (₹) |
|---|---|
| Revenue from Operations (Cash + Credit) | 25,00,000 |
| Purchases (Cash + Credit) | 12,00,000 |
| Carriage Inward | 20,000 |
| Salaries | 1,45,000 |
| Wages | 85,000 |
| Increase in Inventory | 50,000 |
19
PYQ 2025
medium
accountancy ID: cbse-cla
From the following information of Jamna Ltd., prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2024.
| Particulars | 2022–23 (₹) | 2023–24 (₹) |
|---|---|---|
| Revenue from operations | 16,00,000 | 20,00,000 |
| Cost of revenue from operations | 8,00,000 | 10,00,000 |
| Other expenses | 2,00,000 | 4,00,000 |
Tax Rate:
20
PYQ 2025
medium
accountancy ID: cbse-cla
Show the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:
(a) Calls in advance
(b) Public deposits
(c) Intangible assets under development
(a) Calls in advance
(b) Public deposits
(c) Intangible assets under development