Arrange following in a sequence in which amount realised from Assets will be utilised to pay.
A. Partner's Loan
B. Partner's Capital
C. Secured debts of the firm
D. Unsecured debts of the firm
E. Residue to partners
Choose the correct answer from the options given below:
Arrange following in a sequence in which amount realised from Assets will be utilised to pay.
A. Partner's Loan
B. Partner's Capital
C. Secured debts of the firm
D. Unsecured debts of the firm
E. Residue to partners
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 3
As per Section 48 of the Indian Partnership Act, realised amount is applied in this order: first secured debts (C), then unsecured debts of the firm (D), then partner's loan (A), then partner's capital (B), and finally the residue if any is distributed among partners (E). Correct order is C, D, A, B, E.
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