Question : All assets of the firm except cash/bank are transferred to Realisation A/c at _________.

Option 1: Book value

Option 2: Market value

Option 3: Present value

Option 4: Future value

Question : All assets except ——- are transferred to realisation A/c at the time of dissolution.

Option 1: Cash in hand

Option 2: Bank balance

Option 3: Cash, bank balance and fictitious asset

Option 4: Fictitious assets

Question : In case of dissolution, assets are transferred to Realisation Account:

Option 1: At Book Value

Option 2: At Market Value

Option 3: Cost or Market Value, whichever is lower

Option 4: None of the Above

Question : Identify the assets which is not transferred to Realisation A/c from the following:

Option 1: Bills receivable

Option 2: Cash in hand/bank

Option 3: Goodwill

Option 4: Prepaid expenses

Question : Realisation Expenses, 15,000 were paid by the firm on behalf of a partner. The Journal Entry passed will be:

Option 1: Realisation A/c Dr. 15,000
To Cash/Bank A/c 15,000

Option 2: Realiastion A/c Dr. 15,000
To Concerned Partner’s Capital A/c 15,000

Option 3: Concerned Partner’s Capital A/c Dr. 15,000
To Cash/Bank A/c 15,000

Option 4: Cash/Bank A/c Dr. 15,000
To Realisation A/c 15,000

Question : What is the treatment of provisions against assets on dissolution of a firm?

Option 1: Provisions against assets are credited to Realisation A/c.

Option 2: Provisions against assets are credited to revaluation A/c.

Option 3: Provisions against assets are debited to Realisation A/c.

Option 4: Provisions against assets are credited to partner's capital account.