Q. Loss on realization is distributed among partners:
✅ Correct Answer: (A)
according to profit and loss ratio
Financial Accounting 2 MCQs and Notes
Q. If a partner takes over an asset of the firm, his capital account:
✅ Correct Answer: (A)
will be debited with the amount as agreed
Q. At the time of dissolution non – cash assets are credited with:
✅ Correct Answer: (B)
book value
Q. At the time of dissolution:
✅ Correct Answer: (C)
non cash assets are transferred to realization a/c
Q. If all the partners, but one, are solvent it is:
✅ Correct Answer: (B)
dissolution of firm
Q. If all the partners, but one are insolvent it is:
✅ Correct Answer: (B)
dissolution of firm
Q. Retirement or death of a partner.
✅ Correct Answer: (A)
is dissolution of partnership agreement
Q. On the retirement of a partner any reserve being should be transferred to the capital account of:
✅ Correct Answer: (A)
all partners in the old profit sharing ratio
Q. The loss or gain an account of revaluation at the time of retirement of a partner is shared by:
✅ Correct Answer: (C)
all partners
Q. Amount due to outgoing partner is shown in the balance sheet as his:
✅ Correct Answer: (D)
loan