The firm of R, K and S was dissolved on 31.3.2019. Treatment of goodwill is very easy in case of dissolution of a firm. They decided to dissolve their firm. FALSE

TRUE

alternatives

FALSE

answer explanation . Realisation Account: – In the accounting Treatment on Dissolution of the Firm firstly we will prepare the realisation account. On dissolution every asset and liability of the firm is transferred to realisation account and if any amount is realised for goodwill then bank / cash account is debited and the realisation account is credited. Realisation account is prepared by: Transferring all assets except cash or bank account to the debit side of the account. The asset account also was closed by transferring to the same account. On dissolution of a firm, partner’s loan account is transferred to (a) realisation account (b) partner’s capital account (c) partner’s current account (d) None of these Answer (d) None of these. Realisation Account : Realisation account is opened on the dissolution of a firm. On dissolution every asset and liability of the firm is transferred to realisation account and if any amount is realised for goodwill then bank / cash account is debited and the realisation account is credited. The book value of assets (other than cash and bank) transferred to Realisation Account is ₹ 1,00,000. Following entry is passed for it. (i) The Realisation Account should be credited with the actual amount realised by sale of assets. Question 2. Dissolution of partnership firm Problem 15 – Treatment of Goodwill on Dissolution (Type 2) Question 15 : – On dissolution goodwill account is transferred to In the capital accounts of partners. Assets and Liabilities are transferred to Realisation account. Pass necessary journal entries for the following transactions on the dissolution of the firm P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account: (a) Bank Loan ₹ 12,000 was paid. On dissolution every asset and liability of the firm is transferred to realisation account and if any amount is realised for goodwill then bank / cash account is debited and the realisation account is credited. Answer: (c) On the Debit side of Realisation Account Question - Series 50 The court can order the Dissolution of a Partnership Firm, if any of the partners becomes a person of unsound mind. X and Y are partners in the firm who decided to dissolve the firm. Otherwise, there is no need to do so! 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But only the balance left in the asset or liability account, being gain or loss, is transferred to Realisation Account. 17. Pass necessary Journal entries for the following after various Assets (other than Cash and Bank) and the third party liabilities have been transferred to Realisation Account: … How goodwill is treated on dissolution of the firm ? Answer (c) Realisation account. It is transferred to realization account at its balance sheet amount. It is transferred to realization account at its balance sheet amount. Pass necessary journal entries for the following after various assets (other than cash and Bank) and the third party liabilities had been transferred to realisation account. On dissolution of a firm, partner’s loan account is transferred to (a) realisation account (b) partner’s capital account (c) partner’s current account (d) None of these Answer (d) None of these. The book value of assets (other than cash and bank) transferred to Realisation Account is Rs 1,00,000. On Dissolution of a Firm, Partner's Loan Account is Transferred to . Assets and Liabilities are transferred to Realisation account. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students. All the assets of the firm which can be converted into cash are transferred to Realisation Account. The object of preparing this account is to determine gain (profit) or loss on the realisation of assets and payment of liabilities. Question 2. (a) cash account (b) bank account (c) realisation account (d) partner’s capital account. 4,000. d. answer . Answer. Tags: ... At the time of Dissolution of firm, goodwill appearing the balance sheet is transferred to _____Account. Reason: On Dissolution Goodwill Account is transferred to Debit side of Realisation Account since all asset on dissolution are transferred to Realisation Account. Dissolution of partnership firm Problem 15 – Treatment of Goodwill on Dissolution (Type 2) Question 15 : – Question 7. Pass necessary journal entries for the following transactions on the dissolution of the firm P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account: (a) Bank Loan ₹ 12,000 was paid.

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