Question 1

In the event of dissolution of firm the partners personal assets are first used for payment of -------------- liabilities

Accepted Answer

A) Firm's 
B) Outsiders 
C) External 
D) Personal

Question 2

In the case of dissolution of the firm , the account opened for closing various items in the balance sheet is called ----------------

Accepted Answer

A) Deficiency account 
B) Revolution account 
C) Realization account 
D) None of these

Question 3

When the relation of partnership among different partners changes without affecting the entity of the firm it is called------

Accepted Answer

A) Dissolution of partnership 
B) Dissolution of firm 
C) Dissolved by mutual agreement 
D) Termination

Question 4

The ------ has distinguished the 'dissolution of partnership' from 'dissolution of firm'.

Accepted Answer

A) Companies act 1956 
B) Banking regulation act 1949 
C) Indian partnership act 1932 
D) Insurance act 1938

Exam 6: Dissolution and Settlement of Partnership Firm

In the event of dissolution of firm the partners personal assets are first used for payment of -------------- liabilities