Question : On dissolution of the firm, what payment is made first from the personal assets of a partner?
Option 1: Firm debts
Option 2: Private debts
Option 3: The firm's debt and private debt both
Option 4: None of the above
Correct Answer: Private debts
Solution : Answer = Private debts
On dissolution of a firm, the personal assets of a partner are applied first in payment of their private debts. If there are any surplus funds after paying private debts, they are applied to payment of the firm's debts or paid to the partner. Hence, the correct option is 2.
Question : Private property of each partner is applied first towards the payment of his _________and surplus, if any, is applied towards payment of_____________.
Question : Debts which the firm owes to outsiders are known as the firm's debts, whereas the debts which a partner owes in his personal capacity are known as___________.
Question : Amount realised from the sale of private estate of partners will be used first to pay the _________.
Question : In the event of dissolution of a firm, the partner’s personal assets are first applied for payment of:
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