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Important Questions and Answers for Class 12 Accountancy Chapter 4 Dissolution of Partnership Firm 2025-26

Q: 3. Where can I find a dissolution of partnership firm Class 12 important questions PDF with answers?

You can access a dissolution of partnership firm important questions PDF with answers on Vedantu’s website. These PDFs include solved case-based, numerical, and past year questions, making revision easier. Use them regularly for practice, and review aligned short and long-answer formats for exam preparation.

Q: 4. Which subtopics carry the highest weightage in Class 12 Dissolution important questions?

The highest scoring subtopics are:Realisation Account: preparation and adjustmentSettlement of partners’ capitalsTreatment of unrecorded assets/liabilitiesJournal entries in dissolutionRevise these first for best results in exams.

Q: 5. How should I practice and present realisation account questions in CBSE exams?

For realisation account questions, draw a neat Realisation Account format with all required columns. Record assets and liabilities accurately. Include clear headings and brief narrations. Show calculations and totals on both sides. Underline final balances. This method ensures full marks as per CBSE step marking scheme.

Q: 6. What are common mistakes to avoid while attempting dissolution questions in Class 12 Accountancy?

Avoid these frequent errors:Missing steps in entry formationIncorrect accounts names (e.g., Partners Capital vs. Realisation Account)Omitting calculations or working notesNo proper account formats or headingsCareful and neat work helps secure marks.

Q: 7. Are the dissolution of partnership firm Class 12 previous year questions helpful for board exam practice?

Yes, practicing previous year questions helps you understand the exam pattern, commonly tested subtopics, and expected answer formats. Reviewing actual CBSE trends will improve your speed and stepwise accuracy in presenting solutions for important questions from Chapter 4.

Dissolution of Partnership Firm Class 12 Important Questions PDF with Solutions

On this page, you’ll find Important Questions Class 12 Accountancy Part 1 Chapter 4 Dissolution of Partnership Firm along with dissolution of partnership firm solved questions pdf for easy practice. This chapter explains how partnership businesses end and how accounts are settled between partners.

We cover all core topics of Class 12 Accountancy Chapter 4, including dissolution of partnership firm class 12 important questions pdf. Students get previous year questions, conceptual MCQs, and practical sums with stepwise answers, helpful for CBSE exams and quick revision.

These Vedantu Important Questions with Answers help you revise the whole chapter, understand realisation account entries, and avoid exam mistakes. Download the Important Questions PDF for free and get everything you need for strong exam preparation.

Dissolution of Partnership Firm Class 12 Important Questions PDF with Solutions

1. Multiple choice questions.

Q1. Which of the following does NOT necessarily result in dissolution of the partnership firm?

(a) Admission of a new partner
(b) Expiry of fixed period for which firm was established
(c) Insolvency of all partners except one
(d) Firm declared illegal by law

Answer: (a) Admission of a new partner

Q2. Which account is prepared to determine profit or loss on dissolution?

(a) Profit and Loss Appropriation Account
(b) Realisation Account
(c) Revaluation Account
(d) Capital Account

Answer: (b) Realisation Account

Q3. Which section of the Indian Partnership Act guides the settlement of accounts at dissolution?

(a) Section 46
(b) Section 48
(c) Section 50
(d) Section 60

Answer: (b) Section 48

Q4. What is the first priority in the application of assets upon dissolution?

(a) Repayment to partners’ capital
(b) Repayment of partners’ loans
(c) Payment of third party debts
(d) Profit division among partners

Answer: (c) Payment of third party debts

Q5. Which of the following is NOT grounds for compulsory dissolution?

(a) Insolvency of all partners but one
(b) Death of a partner
(c) Business becoming illegal
(d) All partners become insolvent

Answer: (b) Death of a partner

2. Very Short Answer (VSA).

Q1. Define dissolution of partnership firm.

Answer: Dissolution of partnership firm means the closing down of the business, settlement of its accounts, and bringing the partnership between all partners to an end.

Q2. Name the account which shows profit or loss on realisation of assets and settlement of liabilities.

Answer: The account is called Realisation Account.

Q3. What is compulsory dissolution?

Answer: Compulsory dissolution occurs when the business becomes unlawful or all partners except one become insolvent.

Q4. Give any one distinction between dissolution of partnership and dissolution of firm.

Answer: In dissolution of partnership, the business continues, but in dissolution of firm, business is closed.

3. Short Answer Questions.

Q1. State any two modes of dissolution of a partnership firm as per the Indian Partnership Act, 1932.

Answer: Two modes are: (1) Dissolution by agreement with consent of all partners; (2) Compulsory dissolution due to all but one partner becoming insolvent or business becoming illegal as per law.

Q2. Explain the “Garner vs. Murray rule” regarding settlement among partners on dissolution.

Answer: When a partner is insolvent and unable to contribute share of deficiency, it is borne by solvent partners in their capital ratio at the date of dissolution, according to the Garner vs. Murray rule.

Q3. Distinguish between dissolution of partnership and dissolution of partnership firm (any two points).

Answer: In dissolution of partnership, business continues in a new form; closure of books is not required. In dissolution of partnership firm, business ends completely and books are closed.

Q4. What is the order of application of assets on dissolution as per Section 48?

Answer: As per Section 48, assets are applied first to pay third party debts, then to repay partners’ loans, then capital, and surplus is distributed among partners in their profit-sharing ratio.

Q5. What are realisation expenses? Who bears these expenses?

Answer: Realisation expenses are incurred for winding up the firm, like valuation, legal charges, auctioneer’s fees. These are borne by the firm unless a partner has agreed to bear them.

4. True or False Questions.

Q1. In case of dissolution of partnership, business of the firm is discontinued.

Answer: False.

Q2. Profit or loss on realisation is transferred to partners’ capital accounts in profit sharing ratio.

Answer: True.

Q3. Compulsory dissolution always occurs on expiry of agreed partnership period.

Answer: False.

Q4. Garner vs. Murray rule applies when there is a loss due to insolvency of a partner.

Answer: True.

Q5. Realisation expenses are always borne by the partner who incurs them.

Answer: False.

3. Fill in the Blanks Questions.

Q1. On dissolution, firm’s assets are first applied to pay ______ debts.

Answer: third party

Q2. The account prepared to ascertain profit or loss on dissolution is called ________ Account.

Answer: Realisation

Q3. Deficiency of insolvent partner is shared by solvent partners in their ________ ratio.

Answer: capital

Q4. Dissolution of partnership firm results in ________ of business.

Answer: closure

Q5. According to Section 49, private assets are used to pay ________ debts.

Answer: private

How Dissolution of Partnership Firm Problems Prepare Students for Class 12 Accountancy

These questions help you build strong concepts in dissolution of partnership firm and realisation account questions and answers class 12. Easy explanations support exam preparation as per dissolution of partnership firm class 12 important questions pdf and similar resources.

Our step-by-step answers support students targeting dissolution of partnership firm class 12 previous year questions. You’ll grasp practical problems, accounting treatment, and get clarity through important dissolution questions and answers pdf plus related topics like realisation account, settlement, and journal entries.

Work through dissolution important questions class 12 to develop confidence in real-life problem-solving. This collection with dissolution of partnership firm class 12 solutions practical problems is a valuable companion for students who want to understand both theory and application for their Accountancy exams.

FAQs on Important Questions and Answers for Class 12 Accountancy Chapter 4 Dissolution of Partnership Firm 2025-26

1. What are the most important questions asked from Class 12 Accountancy Chapter 4 – Dissolution of Partnership Firm?

The most important questions from this chapter include definitions, realisation account format, calculation of partners’ capital, stepwise dissolution entries, and application-based problems. Focus on:

Dissolution process steps and journal entries
Format and calculation in Realisation Account
Case-based calculation or short answer patterns

2. How can I frame answers for dissolution important questions to score full marks?

To score full marks, keep answers well-structured and show all calculation steps. Use headings, write clear account names and narrations for journal entries, and underline keywords. List all required working notes. Reminder: neat formatting and proper account titles help in step marking.

3. Where can I find a dissolution of partnership firm Class 12 important questions PDF with answers?

You can access a dissolution of partnership firm important questions PDF with answers on Vedantu’s website. These PDFs include solved case-based, numerical, and past year questions, making revision easier. Use them regularly for practice, and review aligned short and long-answer formats for exam preparation.

4. Which subtopics carry the highest weightage in Class 12 Dissolution important questions?

The highest scoring subtopics are:

Realisation Account: preparation and adjustment
Settlement of partners’ capitals
Treatment of unrecorded assets/liabilities
Journal entries in dissolution

Revise these first for best results in exams.

5. How should I practice and present realisation account questions in CBSE exams?

For realisation account questions, draw a neat Realisation Account format with all required columns. Record assets and liabilities accurately. Include clear headings and brief narrations. Show calculations and totals on both sides. Underline final balances. This method ensures full marks as per CBSE step marking scheme.

6. What are common mistakes to avoid while attempting dissolution questions in Class 12 Accountancy?

Avoid these frequent errors:

Missing steps in entry formation
Incorrect accounts names (e.g., Partners Capital vs. Realisation Account)
Omitting calculations or working notes
No proper account formats or headings

Careful and neat work helps secure marks.

7. Are the dissolution of partnership firm Class 12 previous year questions helpful for board exam practice?

Yes, practicing previous year questions helps you understand the exam pattern, commonly tested subtopics, and expected answer formats. Reviewing actual CBSE trends will improve your speed and stepwise accuracy in presenting solutions for important questions from Chapter 4.