Tag: payment of firm's debts and separate debts, realisation of assets and liabilities
Questions Related to payment of firm's debts and separate debts, realisation of assets and liabilities
Which of the following is not correct statement ?
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On dissolution of a firm, realisation account is debited with all assets to be realised.
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General reserve appearing in Balance Sheet is transferred to partner's capital account in profit sharing ratio.
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On dissolution of a firm, Cash balance in hand is transferred to realisation account.
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Dissolution of partnership firm and dissolution of a firm are different.
All those assets which can be converted into cash are transferred to realisation account such as Building, Plant and Machinery, Land etc. Because the main object of this account is to find out the profit or loss on realisation of assets and payment of liabilities.
In India, audit of Partnership firm is:
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Compulsory
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Optional
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Statutory by law
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None of these
In India, no compulsory audit is provided by Indian Partnership Act, 1932. As per the Income Tax Act , 1961, Tax audit of Partnership Firm is mandatory if the turnover exceeds One Crore Rupees in case of business and Rupees Twenty Five lakhs in case of Profession.
Where a partner of a firm has become of unsound mind, the suit for dissolution may be brought by:
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Himself
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A friend of that partner
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A relative of that partner
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Both B and C
Section 44 of the Indian Partnership Act states that when a partner becomes of unsound mind,suit for dissolution can be brought by other partner, a friend of that partner and by a relative of that partner. Unsoundness of a partner can be ground for dissolution of firm.
A firm is dissolved when the business of the firm becomes ________.
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Illegal
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legal
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Partially illegal
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Partially legal
Dissolution of partnership firm may take place without the intervention of court or by the order of a court, in any of the specified ways. It may be noted that dissolution of the firm necessarily brings in dissolution of partnership. Compulsory Dissolution is one of the way because of which dissolution of firm may take place. A firm is dissolved compulsorily in the following case:
Subject to contract between the partners, a firm is dissolved by the _______ of a partner.
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Existence
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Death
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Retirement
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Insanity
Dissolution of partnership firm may take place without the intervention of court or by the order of a court, in any of the specified ways. It may be noted that dissolution of the firm necessarily brings in dissolution of the partnership.
In case of partnership at will, the firm may be dissolved if any ______ of the partners give a notice in writing to the other partners, signifying his intention of seeking dissolution of the firm.
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One
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Two
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All
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Some
Dissolution of a partnership firm may take place without the intervention of court or by the order of a court, in any of the ways specified. It may be noted that dissolution of the firm necessarily brings in dissolution of the partnership.
In dissolution of partnership, _________ account is created, whereas _________ account is prepared in dissolution of firm.
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Revaluation, Realization
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Realization, Revaluation
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Revaluation, Memorandum
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Memorandum, Realization
If a partner is retiring or any new partner is admitted, its called dissolution of partnership. In such situation all the assets and liabilities are revalued for which a revaluation account is opened. The differences of the original value and revalued amount are transferred to Revaluation Account. Surplus or deficit on revaluation is transferred to the partners capital account.
A partnership comes to an end due to ________.
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Insolvency of all partners
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Death of a partner
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By notice dissolution given by a partner
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All of the above
Partnership are come to end various reasons such as partners are insolvent , firm suffer loss from a long time and end of partnership deed then also partnership come to end
In dissolution of partnership, business ________ whereas in dissolution of firm, the business is ________.
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Closes, Continued
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Partly closes, Continued
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Continues, Closed
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Continues, Partly closed
According to Section 39 of the partnership act 1932, the dissolution of partnership between all the partners of a firm is called dissolution of the firm.
Dissolution of the partnership is _________ in nature, as it is dissolved by mutual agreement. Conversely, a firm is dissolved either ________________.
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Voluntary, Voluntarily or Temporarily
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Temporary, Voluntarily or Compulsorily
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Voluntary, Voluntarily or Compulsorily
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Unchanged, Voluntarily or Compulsorily
A partnership gets terminated in case of admission, retirement, death etc. of a partner. This does not necessarily involve dissolution of firm.