Tag: dissolution of firm
Questions Related to dissolution of firm
A director may be removed before the expiry of his term by passing a/an :
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Ordinary resolution
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Special resolution
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Resolution requiring special notice
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Any of the above
According to Section 115 of the Companies Act, A special notice with the intention of removing a director by the specified number of members of the company has to be passed. A special notice required to be given to the company shall be signed by members holding not less than 1 percent of the total voting power. Opportunity can be given to the director to submit his statement in writing against his removal from company.
Upon the dissolution of a firm, in piecemeal distribution of cash, cash is distributed among partners in the :
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Sacrificing ratio
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Ratio of capitals
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Profit sharing ratio
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None of the above
In piecemeal distribution of cash, there are two methods:
1. Proportionate Capital Method: The partners whose capitals are more than the proportionate to other partner's capital should first be refunded so much as to bring down their capitals to proportionate levels.
2. Maximum Loss Method: An alternative method of piecemeal distribution is to calculate the maximum possible loss on every realisation after the outside liabilities and the partner's loan has been paid.
Unrecorded liability when paid on dissolution of a firm is debited to ____________ .
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realisation A/c
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partner's A/c
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partner's Capital A/cs
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balance sheet
In case of creditor's voluntary winding up, the liquidators are appointed by __________.
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Members
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Creditors
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Both (A) and (B)
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Court
Voluntary winding up is the process in which a company is unable to carry out it operations or the period for carrying the operations expires or if it is unable to meet its financial obligations. It can carry this process either by passing special resolution or by ordinary resolution. There are two kinds of voluntary winding up. They are;
- Member's voluntary winding up.
- Creditors voluntary winding up.
A court can order the dissolution of the partnership firm in the following cases except ___________.
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when a partner transfer his share to a third party without the consent of other partners
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on the death of partner
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when the number of partner exceeds $20$
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on the expiry of the period for which it was formed
According to the provisions of the Indian Partnership Act, 1932, a court can order the dissolution of the partnership firm in the following cases:
- On the death of the partner.
- When the number of partner exceeds 20.
- On the expiry of the period for which it was formed.
Which of the following is the case of voluntary dissolution of partnership?
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Dissolution by consent
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Dissolution by agreement
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Dissolution by notice
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All of the above
Section 40 provides for dissolution of a firm by voluntary acts of the partners. It lays that, "a firm may be dissolved with the consent of all partners or in accordance with a contract between the partners."
When a company is wound up at the instances of either the members or the creditors, the winding up is termed as _____________.
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Compulsory winding up
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Voluntary winding up
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Winding up subject to supervision of court
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None of the Above
Voluntary winding up is the process in which a company is unable to carry out it operations or the period for carrying the operations expires otr if it is unable to meet its financial obligations. It can carry this process either by passing special resolution or by ordinary resolution. Under creditor's voluntary winding up the board of directors are not in position to give declaration on the liability of the company. Hence, they call meeting to of creditors to wind up the company.
Who is treated as liquidator in Creditors' voluntary winding up?
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Person appointed by member
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Person appointed by creditors
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Person appointed by court
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Person appointed by directors
Voluntary winding up is the process in which a company is unable to carry out it operations or the period for carrying the operations expires or if it is unable to meet its financial obligations. It can carry this process either by passing special resolution or by ordinary resolution. There are two kinds of voluntary winding up. They are;
- Member's voluntary winding up.
- Creditors voluntary winding up.
In which of the following ways a partnership firm may be dissolved?
I. Dissolution by Agreement
II. Compulsory dissolution
III. Dissolution by Notice
IV. Dissolution by court
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I and II.
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I and III.
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III and IV.
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I, II, III and IV.
According to the provisions of the Indian Partnership Act, 1932, dissolution of a firm means closing down the undertaking, suspending permanently the activities of a partnership business or a complete breakdown of a partnership. It can be dissolved in the following ways:
- Dissolution by agreement.
- Compulsory dissolution.
- Dissolution by notice.
- Dissolution by court.
The dissolution of partnership may take place by ____________________.
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Change in existing profit-sharing ratio among partners
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Admission of a new partner
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Retirement of a partner
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All of the above
Dissolution of partnership changes the existing relationship between partners but the firm may continue its business as before. The dissolution of partnership may take place in any of the following ways: