Practice Dissolution vs. Retirement - 1.4.3.1 | ICSE Class 12 Accounts – Chapter 1: Partnership | ICSE Class 12 Accounts
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1.4.3.1 - Dissolution vs. Retirement

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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define dissolution in a partnership context.

💡 Hint: Think about what happens to the business and its operations.

Question 2

Easy

What remains operational after a partner retires?

💡 Hint: Focus on the impact of one partner leaving the business.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does dissolution refer to in a partnership?

  • A. Partnership continues
  • B. Partnership is fully closed
  • C. One partner retires

💡 Hint: Think about what happens to all activities of the firm.

Question 2

True or False: When a partner retires, the partnership is dissolved.

  • True
  • False

💡 Hint: Consider the difference in implications between the two scenarios.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A partnership consisted of three partners. After one partner's retirement, they had to adjust their profit-sharing ratio from 1:1:1 to 1:1. What does this change mean, and how should it be accounted for?

💡 Hint: Consider how each partner’s share of profits is affected by the retirement.

Question 2

If a partnership dissolves owing $10,000 in debt and it has assets valued at $15,000, explain the sequence of actions to finalize the dissolution and distribute the company’s remaining value.

💡 Hint: Visualize the settlement process and how values are reassigned post-debt clearance.

Challenge and get performance evaluation