MCQ for CA Intermediate Adv. Accounts - Chapter 2 - PARTNERSHIP ACCOUNTS

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 5 - ADVANCED ACCOUNTING - Chapter 2: PARTNERSHIP ACCOUNTS - For Practice relevant for May/November 23 Examinations

UNIT 1 - DISSOLUTION OF PARTNERSHIP FIRMS



Q1. Partnership could be dissolved because of

  1. Death of a partner.
  2. Insolvency of a partner.
  3. Either (a) or (b).

Answer: 3

Q2. On the dissolution of partnership, profit or loss on realization of assets and liabilities should be divided among partners

  1. In the ratio of their capitals
  2. In the same ratio in which they share profits\
  3. Equally

Answer: 2

Q3. An unrecorded asset realized at the time of dissolution is credited to

  1. Realization account
  2. Revaluation account
  3. Capital accounts

Answer: 1

Q4. A liability taken over by a partner at the time of dissolution is credited to

  1. Profit and loss account.
  2. Partners’ capital accounts.
  3. Realization account.

Answer: 2

Q5. Realization account is a

  1. Nominal account.
  2. Real account.
  3. Personal account.

Answer: 1

Q6. Which of the following method/methods is adopted to ensure that distribution of cash among partners is in proportion to their interest in partnership?

  1. Maximum loss method.
  2. Highest relative capital method.
  3. Either (a) or (b).

Answer: 3

 

UNIT 2 - AMALGAMATION, CONVERSION AND SALE OF PARTNERSHIP FIRMS

 

Q1. Amalgamation of partnership firms includes

  1. Closing the old books of Amalgamating firms.
  2. Opening the new books of Amalgamated firm.
  3. Both (a) and (b).

Answer: 3

Q2. When one firm is merged with another existing firm, entries will be made for

  1. Winding up in the books of firm which will cease to exist.
  2. Business purchase in the books of another firm.
  3. Both (a) and (b).

Answer: 3

Q3. In case of amalgamation of firms, profit/ loss on the sale of the firm is ascertained by

  1. Realization account
  2. Revaluation account
  3. New firm’s account

Answer: 3

Q4. Liabilities not taken over by the new firm (at the time of amalgamation) will be transferred to 

  1. Capital accounts
  2. Revaluation account
  3. New firm’s account.

Answer: 3

Q5. While closing the books of the old firm, a.ssets and liabilities not taken over by the new firm should be transferred to

  1. Revaluation account
  2. Partner’s capital accounts
  3. Realization account

Answer: 3

 

CA Intermediate ADV. ACCOUNTS - MCQ for Chapter 3 -   

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