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This set of Special Accounting Multiple Choice Questions & Answers (MCQs) focuses on Special Accounting Set 6
Q1 | When a liability is assumed by a partner his capital accountis ----------
- Debited
- Credited
- deducted
- None of these
Q2 | When an unrecorded asset is taken over by one of thepartners, his capital account is ----------------
- Debited
- Credited
- Added
- None of these
Q3 | The account opened to close the various assets andliabilities of the firm on dissolution is called ------------- account
- Revaluation
- Amalgamation
- Realization
- Reduction
Q4 | When a firm is dissolved, project or loss on realization isshared by the partner’s in their ------------- ratio
- Profit sharing ratio
- Capital contribution
- Asset
- None of these
Q5 | In the event of dissolution of firm the partners personal assets are first used for payment of -------------- liabilities
- Firm’s
- Outsiders
- External
- Personal
Q6 | Goodwill appearing in the balance sheet at Rs. 10,000 proved to be valueless, is not to be recorded on the ------------------ side of realization account
- Debit
- Credit
- Both
- None of these
Q7 | On dissolution, partners loan, if any, will be paid ---------
- First
- Second
- Third
- Lastly
Q8 | -----------of partnership firm means closing the business ofthe firm
- Admission
- Retirement
- Insolvency
- Dissolution
Q9 | On dissolution, all assets except cash are transferred to----------- of realization account
- Debit
- Credit
- Both
- None of these
Q10 | If a partner takes over some assets for value on dissolution,realization account should be -----------
- Debited
- Credited
- Both
- None of these
Q11 | In the case of dissolution of the firm , the account openedfor closing various items in the balance sheet is called ----------------
- Deficiency account
- Revolution account
- Realization account
- None of these
Q12 | A partnership which can be dissolved at any time by givingnotice to other partners is known as ------------------
- Particular partnership
- Partnership at will
- General partnership
- None of these
Q13 | Liabilities to third parties are paid -------------
- First
- Second
- Third
- Lastly
Q14 | The ------ has distinguished the ‘dissolution of partnership’from ‘dissolution of firm’.
- Companies act 1956
- Banking regulation act 1949
- Indian partnership act 1932
- Insurance act 1938
Q15 | Dissolution of a firm leads to
- Continuing of business with the remaining partners
- Closure of business
- Merger with another firm
- None of these
Q16 | Amount advanced by partner over and above the capital ispaid
- Before paying outside debts
- After paying outside debts
- Along with outside debts
- Last along with capital
Q17 | The nominal account prepared to close the account ofbusiness is --------------
- Revaluation account
- Realization account
- Profit & Loss appropriation account
- None of these
Q18 | Realization account is closed by transfer of profit/loss to
- Cash account
- Balance sheet
- Capital accounts
- Profit and loss account
Q19 | Realization account Dr.To partner’s capital a/c; this entry is recorded when
- Profit is transferred
- Unrecorded liability is discharged
- Asset taken over
- (a) and (b)
Q20 | Realization account Dr.To asset a/c, this entry is written
- To open the asset account
- To close the asset account
- To transfer the profit on asset account
- None of these
Q21 | Find the odd one
- Retirement of a partner
- Death of a partner
- All the partners except one become insolvent
- Admission of a partner
Q22 | -------------- is a situation where in existing state ofarrangement is changed.
- Re- possession
- Insolvency
- Reconstruction
- Dissolution
Q23 | ---------------- of the Indian Partnership Act, 1932 states that when the partnership between all the partners of a firm comes to an end, it is called dissolution of the firm
- Section 5
- Section 39
- Section 50
- Section 93
Q24 | When the relation of partnership among different partners changes without affecting the entity of the firm it is called------
- Dissolution of partnership
- Dissolution of firm
- Dissolved by mutual agreement
- Termination