1. The firm is dissolved automatically
on the retirement of a partner. (False)
2. On dissolution Cash or Bank Account
is closed automatically. (True)
3. On dissolution Bank Overdraft is
transferred to Realisation Account.(False)
4. A Solvent Partner having debit
balance to his Capital Account does not share the deficiency of Insolvent
partner's Capital Account. (False)
5. At the time of dissolution of
Partnership Firm all assets should be transferred to Realisation A/c. (False)
6. Debit balance of insolvent Partner's
Capital A/c is known as Capital deficiency. (True)
7. At the time of dissolution, loan
from partner will be transferred to Realisation Account. (False)
8. Dissolution takes place when the
relation among the partners comes to an end. (True)
9. The insolvency loss at the time of
dissolution of the firm is shared by the solvent Partner's in their profit
sharing ratio. (True)
