Arrange the following in the correct sequence, in which the assets of the firm shall be applied, including any sum contributed by the partners to make up deficiencies in the case of dissolution of a partnership firm.
(A) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan).
(B) In paying the debts of the firm to the third parties.
(C) The residue, if any, shall be divided among the partners in their profit sharing ratio.
(D) In paying to each partner proportionately what is due to him on account of capital.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (B), (A), (D), (C)
Section 48 of the Indian Partnership Act, 1932 lays down the order in which a dissolved firm's assets are applied:
(B) In paying the debts of the firm to the third parties.
(A) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan).
(D) In paying to each partner proportionately what is due to him on account of capital.
(C) The residue, if any, shall be divided among the partners in their profit sharing ratio.
NCERT (2026-27 edition):
|
