Practicing Success
State the sequence of payments in case of dissolution of a partnership firm. A. To pay outside liabilities of the business Choose the correct answer from the options given below: |
E, A, B, C, D D, C, B, A, E A, B, D, C, E A, D, B, C, E |
E, A, B, C, D |
The correct answer is Option (1) → E, A, B, C, D. * Realisation expenses are paid first. The assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be applied in the following manner and order: |