Question : On dissolution of a firm; out of the proceeds received from the sale of assets ________will be paid first of all.
Option 1: partner's capital
Option 2: partner's loan to firm
Option 3: outsider's liabilities
Option 4: partner's additional capital
Answer (1)
27th Jan, 2024
Correct Answer: outsider's liabilities
Solution :
Answer =
outsider's liabilities
.
Firm debt is the debts payable by the firm. The firm's debts would be paid first out of the property of the firm, and a surplus of assets, if any, would be utilized in paying off private debts.
Hence, the correct option is 3.
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