Practice Preparation Of Accounts (1.4.3.4) - Partnership - ICSE 12 Accounts

Practice: Preparation of Accounts

Lesson 1.4.3.4Partnership

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9 questions

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6 sample questions

Question 1.
What is the primary purpose of a Realisation Account?
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Think about what happens when a business closes.
Question 2.
Name one key component of Partners' Capital Accounts.
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Consider how partners contribute to the business.
3Question 3.
What is the main function of a Realisation Account?
- To track daily expenses
- To record asset sales during dissolution
- To manage employee salaries
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Think about what happens when a business closes.
4Question 4.
True or False: Partners’ Capital Accounts can fluctuate based on profit sharing.
- True
- False
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Consider how profits affect each partner's investment.
Question 5.
A partnership has two partners: A and B. Partner A contributed ₹100,000, while Partner B contributed ₹150,000. After one year, due to losses, they decide to close the business, and the Realisation Account shows proceeds of ₹80,000 from the sale of assets. What should be the net distribution based on their capital contributions?
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Calculate based on their original investment proportions.
Question 6.
In a partnership, if the Realisation Account eventually has a balance of ₹0 after selling all assets and paying all liabilities, what does that indicate about the financial status of the partnership?
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Consider what settled accounts mean for partners involved.

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