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.
Answer (1)
17th Jan, 2024
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.
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