Class 12 Accountancy - Chapter Dissolution of a Partnership Firm NCERT Solutions | State the difference between dissolution

On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet.

State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities

How deficiency of crditors is paid off at the time of dissolution of firm.

What is a Realisation Account?

Reproduce the format of Realisation Account.

State the order of settlement of accounts on dissolution.

On what account realisation account differs from revaluation account.

Distinguish between firm’s debts and partner’s private debts.

Explain the process dissolution of partnership firm?

Mohan and Shyam are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:

(i) Mohan is an active partner. He wants a salary of Rs. 10,000 per year;
(ii) Shyam had advanced a loan to the firm. He claims interest @ 10% per annum;
(iii) Mohan has contributed Rs. 20,000 and Shyam Rs. 50,000 as capital. Mohan wants equal share in profits.
(iv) Shyam wants interest on capital to be credited @ 6% per annum.

Identify various matters that need adjustments at the time of admission of a new partner.

What are the different ways in which a partner can retire from the firm?

State whether the following statements are true or false:

(i) Valid partnership can be formulated even without a written agreement between the partners;
(ii) Each partner carrying on the business is the principal as well as the agent for all the other partners;
(iii) Maximum number of partners can be 50;
(iv) Methods of settlement of dispute among the partners can’t be part of the partnership deed;
(v) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner;
(vi) Interest on partner’s loan is to be given @ 12% p.a. if the deed is silent about the rate.

Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?

Write the various matters that need adjustments at the time of retirement of partner/partners.

What is sacrificing ratio? Why is it calculated?

On what occasions sacrificing ratio is used?

If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?

 Why there is need for the revaluation of assets and liabilities on the admission of a partner? 

What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

What is sacrificing ratio? Why is it calculated?

List the items which may be debited or credited in capital accounts of the partners when:

(i) Capitals are fixed.
(ii) Capital are fluctuating.

State the meaning of ‘Not- for- Profit’ Organisations.

Illustrate how interest on drawings will be calculated under various situations.

Define Partnership Deed.

What is Capital Fund? How is it calculated?

 Why there is need for the revaluation of assets and liabilities on the admission of a partner? 

If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?

 Why it is considered desirable to make the  partnership agreement in writing.