Question : At the time of dissolution of firm, at which stage the balance of partner’s capital accounts is paid?

Option 1: After making the payment to third party’s loans

Option 2: Before making the payment of partners in respect of their loans

Option 3: After making the payment to third party for their loans as well as partners loans

Option 4: None of the above.

Question : On firm’s dissolution, which one of the following account should be prepared at the last?

Option 1: Realisation Account

Option 2: Cash Account

Option 3: Partner’s Loan Account

Option 4: Partner’s Capital Accounts

Question : At the time of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :

Option 1: Creditor’s Account

Option 2: Realisation Account

Option 3: Partner’s Capital Account

Option 4: Profit & Loss Account

Question : On dissolution of a firm, out of the proceeds received from the sale of assets will be paid first of all to :

Option 1: Partner’s Capital

Option 2:  Partner’s additional capital

Option 3: Outside Creditors

Option 4: Partner’s Loan to Firm

Question : At the time of dissolution of the firm, the partner's loan to the firm is paid out of the amount realised from the sale of assets

Option 1: after payment of outside liabilities but before repayment of capital.

Option 2: after payment of outside liabilities or capital.

Option 3: before payment of outside liabilities.

Option 4: after payment of capital of partners.

Question : What happens to accumulated earnings and losses when a partner retires?

Option 1: Debited to all partner’s capital accounts in old ratio.

Option 2: Credited to all partner’s capital accounts in old ratio.

Option 3: Credited to remaining partner’s capital accounts in new ratio.

Option 4: Credited to remaining partner’s capital accounts in gaining ratio.