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
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.
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 the firm, the partner's loan to the firm is paid out of the amount realised from the sale of assets
Question : On dissolution of a firm, the realization account is credited with
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