Question : On dissolution of a firm, out of the proceeds received from the sale of assets will be paid first of all to :
Option 1: Partner’s Capital
Option 2: Partner’s additional capital
Option 3: Outside Creditors
Option 4: Partner’s Loan to Firm
Correct Answer: Outside Creditors
Solution : The external liabilities, such as the creditors, bank loans, bank overdrafts, bills payable, etc., are initially paid off using the proceeds from the sale of assets and the partners' contributions at the time of the firm's dissolution.
Hence the Correct answer is option 3
Question : On dissolution of a firm; out of the proceeds received from the sale of assets ________will be paid first of all.
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 : At the time of dissolution of partnership firm first of all ______ shall be paid.
Question : On dissolution of a partnership firm, the amount received from the sale of assets is debited to
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