As per section 48 of the Partnership Act, what is the correct sequence to be followed at the time of dissolution of a partnership firm?
A) Payment for partner's loan
B) Payment for partner's capital dues
C) Payment of outsider's liabilities
D) Surplus, if any distributed amongst partners

Choose the correct answer from the options given below-

C, A, B, D

The utilization of the firm's assets, which may also include contributions made by partners to cover capital deficiencies, must adhere to the following sequence and priority:

1) First and foremost, the assets should be used to settle the firm's debts to third parties.
2) Subsequently, the assets should be employed to repay each partner their respective amounts due from the firm for advances (distinguished from their capital contributions, often referred to as partner loans).
3) After addressing advances, the assets should then be allocated to each partner in proportion to their capital investments.
4) Finally, any remaining assets, if available, should be distributed among the partners based on their agreed-upon profit-sharing ratio.