Question

What is the mode of dissolution of the firm followed by G, K, and B?

• A. Dissolution by Agreement
• B. On the happening of certain contingencies
• C. Dissolution by Notice
• D. Compulsory Dissolution
• A. (Cr) ₹90,000
• B. (Dr) ₹90,000
• C. (Cr) ₹1,30,000
• D. (Dr) ₹1,30,000
• A. Loss ₹2,40,000
• B. Gain ₹24,000
• C. Loss ₹1,70,000
• D. Loss ₹2,10,000
• A. Realisation A/c Dr.
  To Cash A/c
• B. Realisation A/c Dr.
  To Gs Capital A/c
• C. Gs Capital A/c Dr.
  To Realisation A/c
• D. Cash A/c Dr.
  To Realisation A/c
• A. 5 : 3 : 2
• B. Equal Ratio
• C. 4 : 3 : 2
• D. Ratio of closing capital claims

Answer 1

The Correct Option is A

As the dissolution is agreed upon by all partners due to continuous losses, it falls under Dissolution by Agreement.
Hence, the correct answer is Option 1.

Answer 2

The Profit and Loss Account based on the capital balances and losses is calculated as Dr ₹1,30,000.
Hence, the correct answer is Option 4.

Answer 3

Based on the realisation of assets and liabilities, the loss on realisation is calculated as ₹1,70,000.
Hence, the correct answer is Option 3.

Answer 4

Since G paid the realisation expenses, the correct journal entry is Realisation A/c Dr. To Gs Capital A/c.
Hence, the correct answer is Option 2.

Answer 5

As per the agreement, the profit and loss are shared in the ratio 5:3:2 among the partners.
Hence, the correct answer is Option 1.