Commerce

Dissolution of Partnership Firm MCQ

Posted by Asok K Nadhani on

Now a days, most of the Competitive Exams, Entrance Exams are conducted on MCQ.  Click HERE to understand the Forms, Structure, Rules of MCQ, techniques of understanding, analysing and selection correct answer of MCQ,
For MCQ of Accounting Concepts, Accounting Principles & Policies, visit https://dvidya.com/accounting-conventions-mcq/
Play the Video explaining some interesting aspects of selection of correct answer of MCQ.

Complete resources on Partnership Accounts

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.