Question : At the time of dissolution of the firm, the partner's loan to the firm is paid out of the amount realised from the sale of assets
Option 1: after payment of outside liabilities but before repayment of capital.
Option 2: after payment of outside liabilities or capital.
Option 3: before payment of outside liabilities.
Option 4: after payment of capital of partners.
Correct Answer: after payment of outside liabilities or capital.
Solution : Answer = after payment of outside liabilities or capital. At the time of dissolution of the firm, the outsider's liabilities should be paid first, then the partner capital balance and at last partner's loan. Hence, the correct option is 2.
Question : On dissolution of a firm; out of the proceeds received from the sale of assets ________will be paid first of all.
Question : On dissolution of the firm, partner A demands that his loan of Rs. 1,00,000 should be paid before payment of Capitals of the partners, whereas partners B and C demand that Capitals should be paid before the payment of A's loan. State the order of payment.
Question : On dissolution of a firm, out of the proceeds received from the sale of assets will be paid first of all to :
Question : At the time of dissolution of partnership firm first of all ______ shall be paid.
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