Tag: partnership 1 - meaning, definition, characteristics and kinds

Questions Related to partnership 1 - meaning, definition, characteristics and kinds

Upon dissolution, the firm's assets shall be first applied in paying the debts of the firm to third parties, shall thereafter be applied in payment of partners loan, shall then be applied in payment of partners capital and still surplus remains it should used for _________.

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. In paying the debts of the firm to third parties

  2. Payment of partners loan

  3. Payment of partners capital

  4. Distribution of surplus to partners in profit sharing ratip

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Correct Option: D

In which of the following situations the firm will NOT be compulsorily dissolved?

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. All partners or any one of the partners is declared insolvent

  2. The business of the firm become unlawful

  3. The partnership has various adventures & one such adventure becomes illegal

  4. The decision is taken by all the partners to dissolve the firm

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Correct Option: C

__________ rule is applicable at the time of any partner becoming insolvent.

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. Garner Vs Murray

  2. Derry Vs Peek

  3. Salmon Vs A. Salomon & Co. Ltd

  4. Mohiri Bibi Vs Dhamodas Ghose

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Correct Option: A

Upon dissolution, the firm's assets shall be first applied in paying the debts of the firm to third parties, shall thereafter he applied in __________.

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. In paying the debts of the firm to third parties

  2. Payment of partners loan

  3. Payment of partners capital

  4. Distribution of surplus to partners in profit sharing ratio

Show answer
Correct Option: B

Firm is automatically and compulsory dissolve, if _________.

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. All partners, or all but one partner, of firm are declared insolvent

  2. Some event happens which makes it unlawful for business of the firm to be carried on or for the partners to carry it on in partnership

  3. (A) or (B)

  4. None of the above

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Correct Option: C

Which of the following is prepared only at the time of dissolution of the firm?

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. Revaluation Account

  2. Realization Account

  3. Profit & Loss Adjustment Account

  4. All of the above

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Correct Option: B

In settling the accounts of a firm after dissolution, losses, including deficiencies of capital, shall be paid _________________.

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. Out of profits

  2. Out of capital

  3. By the partners individually in the proportions in which they were entitled to share profits

  4. First out of profits, next out of capital, and, lastly, if necessary, by the partners individually in the proportions in which they were entitled to share profits

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Correct Option: D

Which of the following is/are disabilities of unregistered firm?

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. No suit between partners and firm

  2. No suit by firm on a third party

  3. No claim of set-off

  4. All of the above

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Correct Option: D

In which of the following case there is no bar on the right of unregistered firm or any partner of its partner?

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. A suit for the dissolution of a firm

  2. A suit for rendering of accounts of a dissolved firm

  3. A suit for realization of the property of a dissolved firm

  4. All of the above

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Correct Option: D

In which of the following case Garner Vs Murray rule is NOT applicable?
$1$. Only one partner is solvent.
$2$. All partners are insolvent.
$3$. When partnership deed provides a specific method to be followed in case of insolvency of a partner
Select the correct answer from the options given.

elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

  1. $1$ only

  2. $1$ & $2$ only

  3. $3$

  4. $1, 2$ & $3$

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Correct Option: D