NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5 Dissolution of Partnership Firm: Chapter five is the last chapter of part one Class 12 Accountancy. The chapter talks about the dissolution of a partnership firm. NCERT Solutions for the chapter enable you to learn the concepts straightforwardly. The solutions summarize all the CBSE Class 12 topics along with those questions that are likely to appear in the exams. So, you have both the summary and the questions that are likely to appear in the exams.
Scroll down to get the dissolution of partnership firm class 12 solutions in detail.
- All you need to know about NCERT Solutions for Class 12 Accountancy
NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5 PDF: Dissolution of Partnership Firm
Download Class 12 Accountancy Chapter 5 NCERT Solutions PDF
This chapter tells you about the dissolution of a partnership firm and its effects and consequences on the partners. Additionally, you will also learn how the firm pays off all the debts and does the accounting for all the partners when it decides to go out of business.
It provides you details of Reserve fund, bank loan, respect of bills, Provision for depreciation, remuneration payable, bills receivables, Loss on realization, Land and Building, partnership sharing profit, Machinery and Furniture, Sundry creditors, Expenses of realisation.
Summary for Class 12 Accountancy Part 1 Chapter 5 Dissolution of Partnership Firm
Chapter five, Dissolution of a Partnership Firm, starts with how a partnership firm dissolves and its effects on the business and its members or partners. Any company’s dissolution, including a partnership firm, may or may not occur with court intervention.
When the partners decide that they want to dissolve the business, they must settle the accounts. That means they must satisfy all the claims using the assets they have with them. The settlement of claims depends on the partners’ agreement and Section 48 of the Companies Act, 1932.
The partners may have to settle both private and company debts before the dissolution of the firm. For paying the company’s debts, the partners can use the assets they get over the business course. And if there are any other assets left with the company or the partners, they can choose to settle any private debts they may have using those assets.
When the firm dissolves, the partners must ensure that they close the accounts by estimating the profits or losses they have made from their assets and settlement of liability claims. If any, the net profit goes into the accounts of all the partners, depending on their share of capital.
So, all the external liabilities, excluding any cash in hand, bank balance of the individual partners, and assets, would also go to each partner’s account. Account closure also considers the sale of assets, payment or settlement of liabilities, and recovery expenses.
NCERT Accountancy Part 1 Book Class 12 Solutions Chapter 5 Weightage Marks
The curriculum for Part I NCERT Solutions for Class 12 Accountancy Chapter 5 has a total of 20 marks.
Concepts covered in NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5
- Dissolution of partnership
- Dissolution of a firm
- Settlement of Accounts
- Accounting treatment
Highly Important Links For CBSE Class 12 Accountancy
NCERT books and solutions are available for download as PDF. So, you can download them here, and start preparing for the exams:
Benefits of Using NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5
Check out few benefits of studying the topic from NCERT solutions, which you can find in the following sections.
1. Assess Your Knowledge
The questions at the end of the chapter allow you to evaluate your understanding of the different concepts discussed in the chapter. So, you should try to answer them and know where you stand.
2. Understand Fundamental Concepts Related to the Dissolution of a Partnership Firm
Studying chapter five from NCERT solutions will enable you to understand all the concepts related to a partnership firm’s dissolution. Such concepts may range from the firm’s dissolution, its effects and consequences on the business and the partners, and the settlement of debts and accounts.
All the topics in the chapter will become easy when you go through them using NCERT solutions. By studying chapter five from NCERT solutions, you can ensure that you are thorough with the topics.
4. Studying for the Exams
By studying chapter five in Accountancy from NCERT solutions, you can rest assured that you will score well in the exams. You will also be able to answer any question that appears in the chapter.
We have covered the detailed guide on CBSE NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5. Feel free to ask any questions in the comment section below.
FAQs on NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5
What are the benefits of the CBSE NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5?
Go through the above blog for the benefits of solving NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5.
Define Realisation Account?
When a business is broken down, it is forced to close due to a variety of factors. Liabilities are paid off and resources are auctioned off. An ostensible record, known as a Realisation Account, is kept to keep track of every such action.
What do we learn from this Accountancy Part 1 Chapter 5 Reconstitution of a Partnership Firm?
By visiting the NCERT Solutions for Chapter Five in Accountancy, you will know the effects, consequences, and consequences of a dissolution of a partnership firm. For example, you will learn how partnership firms close their accounts and settle or pay off their debts.
Is it possible to get the NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5 for free?
Yes, students can get the NCERT Solutions for Class 12 Accountancy Part 1 Chapter 5 in PDF format for free from the above article.
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