12th Grade > Accountancy
DISSOLUTION OF A PARTNERSHIP FIRM MCQs
:
B
At the time of dissolution, all the assets of the firm are transferred to Realisation Account at book values.
:
A
Unrecorded Liability paid at the time of dissolution is debited to Realisation A/c and credited to Cash A/c.
:
B
When a firm decides to close its business, it is said to be dissolved
:
C
On the dissolution of the firm, cash in hand is transferred to Cash Account.
:
B
Unrecorded Asset realised at the time of dissolution is debited to Cash A/c and credited to Realisation A/c.
:
C
The expenses of realisation are debited to Realisation A/c.
:
C
On dissolution of partnership, the realisation account is debited with all assets to be realised.
:
C
No. We don't need to pass any entry for assets taken over by a creditor.
:
A
Yes, the court has authority to give order to dissolve the firm.
:
C
Cash and bank balance are not transferred to realisation account