Realisation of Assets (Dissolution)

Q.

At the time of dissolution, all the assets of the firm are transferred to Realisation Account at ___________ values.

1. Book

2. Market

3. Asset

4. None of these

Q.

Unrecorded Asset realised at the time of dissolution is debited to __________ and credited to ___________.

1. Realisation A/c, Cash A/c

2. Cash A/c, Realisation A/c

3. Cash A/c, Partner's Capital A/c

4. Partner's Capital A/c, Cash A/c

Q.

On dissolution of partnership, the realisation account is debited with :

1. All the liabilities of the firm

2. All assets to be realised

3. Any asset taken over by one of the partners.

4. Cash received from the sale of assets

Q. The workmen compensation reserve has a balance of Rs. 70, 000 and a claim of Rs. 10, 000. So, rupees can be transferred to realisation account.

1. 60000
2. 70000
3. 80000
4. 10000

Q.

The entry for realisation of all the assets-

1. Realisation A/c Dr.

   To Bank/ Cash A/c

2. Realisation A/c Dr.

   To Assets A/c

3. Bank/ Cash A/c Dr.

   To Realisation A/c

4. Assets A/c Dr.

   To Realisation A/c

Q.

Debtors were shown in balance sheet at Rs 80, 000.

Debtors were realised at a discount of 7%.

The journal entry will be-

1. Realisation A/c Dr 5600

   To Bank A/c 5600

2. Bank A/c Dr 74400

   To Realisation A/c 74400

3. Realisation A/c Dr 74400

   To Bank A/c 74400

4. Bank A/c Dr 5600

   To Realisation A/c 5600

Q.

An unrecorded asset realised at the time of realisation is credited to -

1. Revaluation A/c

2. Capital A/c

3. Realisation A/c

4. None of these

Q.

What is the treatment to be made for assets taken over by a partner at the time of the dissolution of a firm?

1. None of these

2. credited to Realisation A/c

3. debited to Realisation A/c

4. Realisation A/c should neither be debited nor credited.

Q. For sale of assets at the time of realisation, we debit account and credit account.

1. bank
2. capital
3. realisation
4. asset

Q. Identify the major heads under which the following items will be shown in the Balance Sheet of a company as per Schedule III of Companies Act, 2013:

(i) Provision for Tax.	(ii) Loan payable on demand.
(iii) Computer and related equipment.	(iv) Goods acquired for trading

Q.

What is not a fictitious asset?

1. Accumalated loses

2. Discount on issues of shares and debentures

3. Deferred revenue expenditure

4. Pre-Paid rent

Q. Debtors had a balance of 2, 00, 000. Debtors were realised at a discount of 13.5%. Hence, the realisation amount is Rs..

1. 1, 75, 000
2. 1, 73, 500
3. 1, 73, 000
4. 2, 00, 000

Q.

For sale of assets, which account is debited?

1. None of these

2. Asset

3. Realiation

4. Bank

Q.

When does the flow of cash take place?

Q.

What are the objectives of preparing cash flow statement?

Q.

Z.Ltd. redeemed 2, 000, 12% debentures of Rs.100 each which were issued at a discount of 5%, by converting them into equity shares of Rs.10 each issued at a premium of 25%. Journalise.

Q.

Realisation A/c is ____________ account prepared at the time of dissolution.

1. a temporary

2. neither temporary nor permanent

3. a permanent

4. none of these

Q.

Furniture of 1, 80, 000 was realised at 1, 00, 000 rupees. The journal entry is-

1. Bank A/c Dr, 1, 00, 000, To Realisation A/c 1, 00, 000

2. Bank A/c Dr, 1, 80, 000 To Realisation A/c 1, 80, 000

3. Realisation A/c Dr, 1, 00, 000, To Bank A/c 1, 00, 000

4. Realisation A/c Dr, 1, 80, 000, To Bank A/c 1, 80, 000

Q. From the following particulars, prepare a bank reconciliation statement as at March 31, 2010.
i) Balance as per cash book, Rs.3, 200.
ii) Cheque issued but not presented for payment, Rs.1, 800.
iii) Cheque deposited but not collected upto March 31, 2010, Rs. 2, 000.
iv) Bank charges debited by bank, Rs. 150.

Q. On 1st May, 2016, Goodluck Ltd. issued 16, 000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% redeemable after five years. All the debentures were subscribed and allotment was made . Discount on issue of Debentures is to be written off over the life of the debentures.
Prepare the Balance Sheet (extract) as at 31st March, 2017 showing Discount on issue of Debentures.

Q. Closing balance of cash book is _____________ balance.

1. Debit
2. Zero
3. Either (A) or (C)
4. Credit

Q.

___________________ account is prepared to find out the net effect of realisation on various assets and payment of various liabilities in case of dissolution of firm.

1. Partner's capital

2. Realisation

3. Revaluation

4. None of these

Q.

The cash and bank balance show a balance of 50, 000 and 30, 000 respectively. The balance to be transferred to Realisation A/c is _____________

1. 80, 000

2. 30, 000

3. NIL

4. 50, 000

Q.

_____________ is/are not transferred to Realisation A/c.

1. Cash A/c is

2. Bank A/c is

3. Both Cash and Bank A/c are

4. None of these

Q.

For closure of assets accounts, Realisation account is __________.

1. None of these

2. Not sure

3. credited

4. debited

Q. The following account has a credit balance _________________.

1. Carriage Inward
2. Carriage Outward
3. Return Inward
4. Returns Outward

Q.

P&M of 6, 00, 000 was realised at 7, 50, 000 rupees. The journal entry is-

1. Bank A/c Dr, 7, 50, 000, To Realisation A/c, 7, 50, 000

2. Realisation A/c, 7, 50, 000, To Bank A/c Dr, 7, 50, 000,

3. Bank A/c Dr, 6, 00, 000, To Realisation A/c, 6, 00, 000

4. Realisation A/c, 6, 00, 000, To Bank A/c Dr, 6, 00, 000

Q.

For sale of assets, realisation account is __________.

1. None of these

2. Not sure

3. credited

4. debited

Q. An entity has a _______ for each of its attributes, which is stored in the database.

1. Identifier
2. Relationships
3. Accounts type
4. Value

Q. Provision for Discount on Debtors is ___________ to Profit and loss account.

1. Debited
2. Not recorded
3. No entry
4. Credited