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Liquidation MCQs

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sameerhussain.a4
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12 views1 page

Liquidation MCQs

Uploaded by

sameerhussain.a4
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER # 6:

1) The balance left in the capital accounts in case of dissolution is settled by:
* Revaluation account * Bank account
* Realization account * Profit & loss appropriation account
2) Realization account, operated by partnership business, is called:
* Asset * Temporary account * Contra asset * None of these
3) In case of liquidation of a firm, assets are:
* Donated * Distributed * Sold * Revaluated
4) When partnership dissolved, this is the final task:
* Payment to partners * Payment of liabilities
* Payment of expenses * None of these
5) The account debited, on the disposal of assets by less than their book values, is:
* Realization – gain * Realization – loss * Revaluation – gain * Revaluation – loss
6) Gain on revaluation or realization is distributed among the partners according to:
* Partners’ beginning capital ratio * Partners’ ending capital ratio
* Partners’ agreed ratio * Equally
7) If assets are sold more than book value, realization account will be:
* Credited * Debited * Not recorded * None of these
8) If assets valuing Rs.58,999 are sold for Rs.58,900 then there will be a:
* Loss of Rs.100 * Gain of Rs.100 * Loss of Rs.99 * Gain of Rs.99
9) Gain on liquidation will be credited to:
* Income summary account * Cash account
* Partners’ capital account * None of these
10) Realization account may be opened in case of:
* Admission * Retirement * Dissolution * Formation
11) Realization account is temporarily used in place of:
* Expense account * Revenue account * Capital account * Liability account
12) The profit or loss resulting from the realization account is transferred to:
* Assets * Partners’ capital account
* Realization account * Bank account
13) If the partner is solvent, his deficiency is met by:
* Himself * Remaining partners * All partners * The firm
14) In liquidation, when a partner’s share of loss is higher than his capital balance, this
is known as:
* Solvency * Deficiency * Loss * Gain
15) If nothing is stated in partnership agreement, the loss of insolvent partner is borne
by the:
* Same partner * Remaining partners * Third party * Insurance company
16) The summary of events or transactions, at the time of the dissolution of
partnership firm, is called:
* Income distribution summary * Liquidation summary
* Expense and revenue summary * Income summary
17) Realization account is used to closed this account:
* Assets * Revenue * Expense * Drawings

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