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Home Questions MYDDPN9J2E
Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Match the following for the application of assets at the time of dissolution of partnership firm:

List 1 List 2
a) Residue divided among partners in
their profit-sharing ratio		 1) Ist no
b) Pay each partner proportionately what
is due to him on account of capital		 2) 2nd no
c) Debts of the firm to the third parties 3) 3rd no
d) Partner’s loan 4) 4th no

 

Options:

a) 4, b) 2, c) 1, d) 3

a) 2, b) 3, c) 4, d) 1

a) 4, b) 3, c) 2, d) 1

a) 4, b) 3, c) 1, d) 2

Correct Answer:

a) 4, b) 3, c) 1, d) 2

Explanation:
List 1 List 2
a) Residue divided among partners in their profit-sharing ratio 4th no
b) Pay each partner proportionately what is due to him on account of capital 3rd no
c) Debts of the firm to the third parties 1st no
d) Partner’s loan 2nd no

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:
(i) In paying the debts of the firm to the third parties;
(ii) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner’ loan);
(iii) In paying to each partner proportionately what is due to him on account of capital; and
(iv) the residue, if any, shall be divided among the partners in their profit sharing ratio.

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