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Dissolution of Partnership Firm Quiz

Class XII
Accountancy
Dissolution of Partnership Firm
12 questions
MEDIUM

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1. What is the first step in the dissolution of a partnership firm?

Settlement of accounts · Distribution of assets · Closing of business · Filing of dissolution deed

2. Which of the following is NOT a reason for the dissolution of a partnership firm?

Mutual consent · Expiry of partnership term · Death of a partner · Increase in profit

3. In the absence of a partnership agreement, how are profits shared upon dissolution?

Equally among partners · According to capital contribution · Based on seniority · As per mutual agreement

4. What happens to the liabilities of the firm upon dissolution?

They are canceled · They must be settled · They are transferred to partners · They are ignored

5. Which document is essential for recording the dissolution of a partnership?

Partnership deed · Dissolution deed · Balance sheet · Profit and loss account