Multiple choice questions on partnership accounting: goodwill, dissolution, and capital.

Here are the solutions to the multiple-choice questions: 14) In case of retirement of a partner, full goodwill is credited to the accounts of: When goodwill is raised or revalued upon the retirement of a partner, it is typically credited to All the partner(s) (including the retiring partner) in their old profit-sharing ratio, as it represents the value built up by the firm during their collective tenure. The correct answer is All the partner(s) 15) The end or termination of partnership is called: The complete cessation of the business of a partnership firm is known as Dissolution. The correct answer is Dissolution 16) In case of dissolution, the payment of liabilities should be credited to: When liabilities are paid during the dissolution of a firm, the cash or bank account is credited because cash is being paid out. The corresponding debit is to the Realization account. The correct answer is Cash account 17) Due to the fresh capital introduced during the year, the closing capital will: When fresh capital is introduced into the business, it adds to the existing capital, causing the closing capital to Increase. The correct answer is Increase 18) The opening and closing balance of bills receivable can be calculated by preparing: To determine the opening and closing balances of bills receivable, one needs to prepare the Bill receivable account. The correct answer is Bill receivable account 19) The amount received by the concern as per the will of the donor is known as: An amount received by an organization according to the will of a deceased person is specifically termed a Legacy. The correct answer is Legacy 20) In the book of consignor's abnormal loss of goods should be credited to: When an abnormal loss occurs in a consignment, the value of the lost goods is removed from the Consignment account by crediting it to correctly ascertain the profit or loss on the remaining goods. The correct answer is Consignment account