In the event of a firm's dissolution, which of the following statements regarding the disposal of assets is true, according to Section 48 of the Partnership Act 1932?

The firm will distribute its assets among the partners after settling the accounts

A partnership firm settles its accounts first because at the time of dissolution, a partnership firm stops conducting its business. After paying off all liabilities if any residue is left with the firm then it is distributed between partners in their profit-sharing ratio.