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What is the procedure for settling partners' loans in priority over capital accounts during dissolution?
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Important Questions on Dissolution of Partnership Firm
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What is a Realisation Account, and what is its purpose?
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Explain the process of dissolution of a partnership firm.
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How are reserves and accumulated losses distributed among partners during dissolution?
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How are realisation expenses handled if they are paid by the firm?
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How should unrecorded liabilities be treated during dissolution?
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How are unrecorded assets treated at the time of dissolution of a firm?
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What is the correct accounting treatment when a partner takes over an asset at a value different from its book value during dissolution?
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How should a partner’s loan be dealt with if it appears on the assets side of the balance sheet during dissolution?
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How does a realisation account differ from a revaluation account?
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What is the impact on partners’ capital accounts when losses on realization are distributed among them?
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How are realisation expenses handled if they are paid by a partner?
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How should unrecorded assets be treated during dissolution?
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How are unrecorded liabilities treated at the time of dissolution of a firm?
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What is the format of a Realisation Account?
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How is the deficiency of creditors paid off at the time of dissolution of a firm?
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What is the difference between dissolution of partnership and dissolution of a partnership firm?
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How should a partner’s loan be dealt with if it appears on the liabilities side of the balance sheet during dissolution?
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What is the order of settlement of accounts on dissolution?
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What is the difference between firm’s debts and partner’s private debts?
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What are the journal entries required when creditors accept assets other than cash in full or partial settlement of their claims?
