Arrange how the losses, including deficiencies of capital, shall be paid in the correct sequence :
(A) Out of profits
(B) Out of capital of partners
(C) In their profit sharing ratio (Individually by partners)
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B), (C)
On dissolution, Section 48 of the Indian Partnership Act, 1932 fixes the order in which losses, including deficiencies of capital, are met, unless the partners have agreed otherwise.
(A) Out of profits
(B) Out of capital of partners
(C) In their profit sharing ratio (Individually by partners)
NCERT (2026-27 edition): |