A partnership firm is dissolved. Which of the following accounts is prepared at the time of dissolution? MCQ with Answer and Explanation

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A partnership firm is dissolved. Which of the following accounts is prepared at the time of dissolution?

A. Realisation Account

B. Revaluation Account

C. Memorandum Revaluation Account

D. Profit and Loss Adjustment Account

Answer: Option A

Solution (By JKSSB Mock Tests)

Realisation Account is prepared to close the books on dissolution.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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Under single entry system, which of the following is usually not maintained?

A. Cash book

B. Personal accounts

C. Real and nominal accounts

D. Debtors and creditors accounts

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Correct Answer: Option C

Explanation:
Single entry often lacks complete double entry; real and nominal accounts may not be fully maintained.

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Question #2

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A credit sale of ₹10,000 to Ram was posted as ₹1,000. This is an error of:

A. Principle

B. Commission

C. Omission

D. Compensation

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Correct Answer: Option B

Explanation:
Error of commission occurs when a transaction is incorrectly recorded, e.g., wrong amount, wrong posting.

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Question #3

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The final step in the accounting cycle is:

A. Preparation of trial balance

B. Journalizing

C. Preparation of financial statements

D. Posting to ledger

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Correct Answer: Option C

Explanation:
The accounting cycle ends with the preparation of financial statements from the trial balance and adjustments.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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