At the time of dissolution of a partnership firm in which X, Y and Z were partners sharing profit in 2:2:1 ratio, the following information was made available. Arrange them in the sequence in which they will be paid.
(A) A's Loan to the firm Rs. 50,000
(B) Creditors Rs. 2,00,000
(C) A's Capital Rs. 2,50,000, B's Capital Rs. 2,00,000 and C's Capital Rs. 1,00,000
(D) Balance available after settlement of all the stakeholders.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B), (A), (C), (D)
On dissolution, the money of the firm is paid out in a fixed order of settlement: outsiders first, then partners' loans, then partners' capitals, and only then the balance.
(B) Creditors Rs. 2,00,000
(A) A's Loan to the firm Rs. 50,000
(C) A's Capital Rs. 2,50,000, B's Capital Rs. 2,00,000 and C's Capital Rs. 1,00,000
(D) Balance available after settlement of all the stakeholders
Note: It seems that there is a mistake in the original NTA paper, which prints the partners as X, Y and Z in the question but as A, B and C in items (A) and (C), when it should read the same names throughout. The meaning is clear, because item (A) is a partner's loan and item (C) lists three partners' capitals. The answer is not affected.
NCERT (2026-27 edition): |