Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

How can any shortfall be overcome in meeting the outside liabilities at the time of dissolution of the partnership firm?

Options:

By all partners from their public assets.

By all partners from their private assets.

By senior partner from his public assets.

By senior partner from his private assets.

Correct Answer:

By all partners from their private assets.

Explanation:

On the dissolution of the partnership firm, assets of the firm are sold and liabilities are paid off and out of the remaining amount, the accounts of partners are settled. If there is a shortfall in meeting outside liabilities, it is met by the partners from their private assets.