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Directions (Q.32-Q.36): Read the following carefully and answer the next five…

CUET Accountancy 2024 · Accountancy · 5 questions

Directions (Q.32-Q.36): Read the following carefully and answer the next five questions. G, K and B were partners running a partnership for last 10 years, sharing profit and loss in the ratio of 5:3:2. Post Covid, their firm was affected badly and started incurring losses. On 31st March, 2023 they all decided to dissolve the firm due to continuous losses. Their capital balances were ₹4,00,000, ₹3,00,000 and ₹2,00,000 respectively. Firm had liabilities ₹80,000, Cash balance ₹40,000, other Sundry Assets ₹8,50,000 and P&L A/c constituted the rest. Assets realised at 80% and liabilities were paid in full. There was unrecorded liability of ₹50,000 which was settled at ₹40,000. Realisation expenses amounted to ₹3,000, being paid by G on behalf of the firm.

Question 1

What is the mode of dissolution of the firm followed by G, K and B?
  1. A. Dissolution by Agreement
  2. B. On the happening of certain contingencies
  3. C. Dissolution by Notice
  4. D. Compulsory Dissolution

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Question 4

The entry for realisation expense in above case study will be:
  1. A. Realisation A/c Dr. To Cash A/c
  2. B. Realisation A/c Dr. To G's Capital A/c
  3. C. Realisation A/c Dr. To Realisation A/c
  4. D. Realisation A/c Dr. To Realisation A/c

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