Class 12 Accountancy NCERT Solutions Chapter 4 - Dissolution of Partnership Firm
FAQs on NCERT Solutions for Class 12 Accountancy I Chapter 4 Dissolution of Partnership Firm
Q1. What is the Order Settlement of Accounts on Dissolution?
The Order Settlement of Accounts Includes:
Taking care of outer cost and liabilities.
Advances that are owed to accomplices ought to be cleared.
Capitals of the apparent multitude of accomplices must be paid off.
Any sum that stays after taking care of all of these things must be circulated among accomplices of the loose firm in their unique benefit-sharing proportion.
If there Should be an Occurrence of Misfortune and Capital Lack, the Accompanying Must be Paid in a Specific Order:
Change misfortune and capital insufficiency against benefits of the firm.
Change against the absolute capital of the firm.
If any misfortune is available after all the changes, the following strategy will be to manage the misfortune according to singular benefit-sharing proportion.
Q2. What is a Realisation Account?
When a firm is broken down, it brings about shutting considering all the things. Resources are auctioned off and liabilities are paid off. To keep up a record of every such action, an ostensible record is prepared which is called a Realisation Account. Its primary objective is to decide the benefit or misfortune that occurs because of settling off resources and liabilities. Whether this activity brings about benefit or misfortune, it gets moved to the Partners' Capital Account with their unique benefit-sharing proportion.
Q3. What do you mean by the dissolution of a partnership firm?
Dissolutions of partnership firms refer to the term which states that the relationship between the firm and its partners are dissolved. This in turn discontinues the business of the firm. After which, a realization account of the partners and the firm is created. After the dissolution of the partnership firm, all the assets of the firm are sold in order to pay for the liabilities. The economic relationship comes to an end. This type of dissolution can be voluntary as well as compulsory, depending on the circumstances.
Q4. How can I prepare Chapter 4 of Class 12 Accountancy?
With the help of NCERT Solutions, students can easily master Chapter 4 of Class 12 Accountancy. The chapter is explained in detail and in easy language to help the students understand the concepts better. Students can find NCERT Solutions for Chapter 4 of Class 12 Accountancy on Vedantu app or website, and they can even download the PDF for the same for free. It will help students clear their doubts as the explanation is provided by subject experts.
Q5. How is the deficiency of creditors paid off?
A deficiency of creditors arises only when a firm does not pay off the creditors after selling the assets and using the partner’s private assets. During such situations, the firm can follow two procedures:
By transferring the deficiency to the partner’s capital account
By transferring the deficiency to the deficiency’s account
During the first procedure, the creditors will get paid by the cash available at the firm which even includes the partner’s contribution. During the second procedure, the firm will create a separate account to pay the creditors off.
Q6. Why should I use NCERT Solutions for Chapter 4 of Class 12 Accountancy?
Chapter 4 of Class 12 Accountancy explains the concepts of Dissolution of Partnership Firm. Students can use Vedantu’s NCERT Solutions for Chapter 4 of Class 12 Accountancy Part 1 to score well in their examinations. Apart from this, NCERT Solutions has study materials that will help students prepare for their examinations. It has detailed explanations of the chapters information and solutions. NCERT Solutions for Chapter 4 Partnership Accounts of Class 12 Accountancy provides students with extensive knowledge of the chapter and comprehensive information about the chapter.
Q7. How is the dissolution of a partnership different from the dissolution of a partnership firm?
Dissolutions of Partnership refers to the part where a partner or partners decide to discontinue their relationship with the firm. Although the partnership is discontinued, the business of the firm continues as usual. Since there is a discontinuation of one or more partners, a revaluation account is created. Apart from this, the economic relationship of the company and the other partner(s) continues to remain the same. The dissolution of a partnership is completely voluntary and this does not have any effect on the firm whatsoever.
