Dissolution Questions

The following are the features of the Dissolution of Partnership:(A) Assets and liabilities are revalued, and a new balance sheet is drawn.(B) Economic relationships between partners continue, though in a changed form.(C) The business is not terminated.(D) The books of account are closed.Choose the correct answer from the options given below:

According to Section ______ of the Partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

At the time of the Dissolution of a Partnership Firm, which statement is not false (i.e., true)?

Arrange the following in the correct chronological/legal order in which assets of the firm must be utilized during the settlement of accounts upon dissolution (Section 48 of Indian Partnership Act):(A) Residue shall be divided between the partners in their profit sharing ratio.(B) In paying the partners proportionately what is due to him/her on account of capital.(C) In paying the partners proportionately what is due to him/her from the firm for advances/loans.(D) In paying the debts of the firm to the third parties.Choose the correct answer from the options given below:

At the time of dissolution, if an asset is taken over by a partner, what journal entry will be recorded in the books of the firm?

Dissolution of a partnership firm may be ordered by the court on the following grounds:(A) when a partner becomes insane.(B) when a partner becomes permanently incapable of performing his duties as partner.(C) when a partner acts in good faith.(D) when it is regarded just and equitable by the court.Choose the correct answer from the options given below:

The dissolution of partnership may take place in any of the following ways EXCEPT:

Which statement is NOT false (i.e., true), in respect of the dissolution of a partnership firm?

At the time of dissolution of a firm, the Bank Loan was $\text{Rs. }60,000$ which was paid by Bhuvan (a partner) along with one-year interest at $6\%$. Which journal entry will be passed in the books of the firm?