Practice Settlement Of Accounts (as Per Section 48 Of Partnership Act) (1.4.3.3)

Practice: Settlement of Accounts (As per Section 48 of Partnership Act)

Lesson 1.4.3.3Partnership

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9 questions

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6 sample questions

Question 1.
What is the first step in the settlement of accounts upon dissolution?
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Think about what needs to happen before paying off debts.
Question 2.
List the order of payment for liabilities during settlement.
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Remember the acronym E-D-L-C.
3Question 3.
What is the first step in the settlement of partnership accounts?
- Pay debts
- Realise assets
- Distribute surplus
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Think about what needs to happen before any payments.
4Question 4.
True or False: Surplus is distributed before capital repayment.
- True
- False
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Refer to the proper order of liabilities.
Question 5.
A partnership of three partners has Rs. 150,000 in assets, Rs. 100,000 in debts, and has just realized Rs. 140,000 from asset sales. Calculate how much each partner receives if they share profits equally after settling liabilities.
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Start by paying the debts then divide the remaining total.
Question 6.
Illustrate the steps taken in a Realisation Account for a hypothetical partnership that has both sales and payments to process. Include at least five transactions.
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Outline sales first, followed by payments made and concluding totals.

5 more questions in this section. Enroll free to practise them all.