# Dissolution of Partnership Firm MCQ

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Dissolution of Partnership Accounts MCQ

1. A, B and C in a partnership firm share profits and losses in the ratio of 1:2:2. Their respective capitals are as follows, A- Rs.10,000, B- Rs.10,000, C- Rs.2,000. They have decided to dissolve the firm after a series of losses following a fall off in a demand. On dissolution, there was a loss of Rs.15,000. C was insolvent and unable to bring any thing towards his deficiency. How much amount will be brought by the partners in cash to realisation losses?
a. A- Rs.3,000, B-Rs.6,000, C-Rs 6,000
b. A- Rs.3,000, B-Rs.6,000, C- Nil.
c. A- Rs.6,250, B-Rs.6,250, C-Rs.1,250
d. None of the above.
Loss on realisation will be shared in the old PSR, i.e A: 15,000 x 1/5 =3,000, B:15,000 x 2/5 =6,000, C: 15,000 x 2/5 = 6,000. The above will be brought by solvent partners A (3000) & B (6000) in cash. Hence option B is correct.
2. A, B and C in a partnership firm share profits and losses in the ratio of 1:2:2. Their respective capitals are as follows, A- Rs.10,000, B- Rs.10,000, C- Rs.2,000. They have decided to dissolve the firm after a series of losses following a fall off in a demand. On dissolution, there was a loss of Rs.15,000. C was insolvent and unable to bring any thing towards his deficiency. How much amount will be borne by Solvent partners, A & B towards the deficiency of C?
a. A-Rs.2,000, B-Rs.2,000
b. A-Rs.1,333, B-Rs.2,667
c. A-Rs.3,000, B-Rs.1,000
d. None of the above.

Loss on will be shared in the old PSR, i.e A: 15,000 x 1/5 =3,000, B:15,000 x 2/5 =6,000, C: 15,000 x 2/5 = 6,000.
Deficiency of C = Rs. 6,000 (share of loss) -2,000 (capital) = Rs.4,000. It will be brought by A & B in their capital ratio 1:1. So, option (a) is correct.