Dissolution of Partnership Firm: Ledger Account Preparation

The video tutorial covers the dissolution of a partnership firm, focusing on problem-solving and ledger account preparation. It explains the process of closing the balance sheet, realizing assets and liabilities, and making final adjustments and payments. The tutorial also introduces further topics like partner insolvency.

What is the profit-sharing ratio among partners A, B, and C?

• 1:1:1

• 3:2:5

• 5:3:2

• 2:3:5

Which account is used to realize all assets and liabilities during dissolution?

• Cash Account

• Realization Account

• Capital Account

• Profit and Loss Account

What is the first step in closing the balance sheet during dissolution?

• Transfer liabilities to realization account

• Pay off creditors

• Transfer assets to realization account

• Calculate profit or loss

How is the furniture taken over by Mr. A recorded?

• Debit Mr. A's capital account, credit realization account

• Debit realization account, credit Mr. A's capital account

• Debit realization account, credit cash account

• Debit cash account, credit realization account

What is the effect of realizing assets on the realization account?

• Debit the realization account

• Credit the realization account

• Debit the cash account

• No effect

How are dissolution expenses recorded?

• Debit realization account, credit capital account

• Debit capital account, credit realization account

• Debit realization account, credit cash account

• Debit cash account, credit realization account

What is the treatment for a partner taking over a liability?

• Debit cash account, credit partner's capital account

• Debit partner's capital account, credit realization account

• Debit realization account, credit partner's capital account

• Debit realization account, credit cash account

What happens to the remaining balance of the Workman Compensation Fund?

• It is distributed among partners

• It is kept as a reserve

• It is used to pay dissolution expenses

• It is paid to creditors

What is the final step in the dissolution process?

• Prepare a new balance sheet

• Close the realization account

• Pay off all liabilities

• Distribute remaining cash to partners

What happens to the bank account at the end of dissolution?

• It is kept open for future transactions

• It is transferred to a new account

• It is closed with no balance

• It is used to pay off remaining liabilities