Match List – I with List – II. List - I List - II (A) Meaning of Diss… | Accountancy Part A CUET question

Match List – I with List – II.

List - I	List - II
(A) Meaning of Dissolution	(I) Section 49, of the partnership Act 1932
(B) Application of Assets	(II) Section 39, of the partnership Act 1932
(C) Private Debts Vs Firm's Debts	(III) Section 4, of the partnership Act 1932
(D) Nature of Partnership	(IV) Section 48, of the partnership Act 1932

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)

(A) Meaning of Dissolution — this matches (II) Section 39. The dissolution of partnership between all the partners of a firm is the dissolution of the firm.

(B) Application of Assets — this matches (IV) Section 48. It lays down the order in which the assets of a dissolved firm are applied.

(C) Private Debts Vs Firm’s Debts — this matches (I) Section 49. The firm’s property goes first to the firm’s debts, and a partner’s private property first to his private debts.

(D) Nature of Partnership — this matches (III) Section 4. It defines partnership.

NCERT (2026-27 edition):
Dissolution of Partnership Firm – “… According to Section 39 of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.”

NCERT (2026-27 edition):
Settlement of Accounts – “In case of dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. For this purpose, it disposes off all its assets for satisfying all the claims against it. In this context it should be noted that, subject to agreement among the partners, the following rules as provided in Section 48 of the Partnership Act 1932 shall apply.”

NCERT (2026-27 edition):
Settlement of Accounts – “… (a) The property of the firm shall be applied first in the payment of debts of the firm and then the surplus, if any, shall be divided among the partners as per their claims, which can be utilised for payment of their private liabilities. (b) The private property of any partner shall be applied first in payment of his private debts and the surplus, if any, may be utilised for payment of the firm’s debts, in case the firm’s liabilities exceed the firm’s assets.”

NCERT (2026-27 edition):
Nature of Partnership – “When two or more persons join hands to set up a business and share its profits and losses, they are said to be in partnership. Section 4 of the Indian Partnership Act 1932 defines partnership as the ‘relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all’.”