Arrange the following in the correct sequence, in which the assets of the firm shall be applied, including any sum contributed by the partners to make up deficiencies in the case of dissolution of a partnership firm.
(A) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan).
(B) In paying the debts of the firm to the third parties.
(C) The residue, if any, shall be divided among the partners in their profit sharing ratio.
(D) In paying to each partner proportionately what is due to him on account of capital.
Choose the correct answer from the options given below:
Arrange the following in the correct sequence, in which the assets of the firm shall be applied, including any sum contributed by the partners to make up deficiencies in the case of dissolution of a partnership firm.
(A) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan).
(B) In paying the debts of the firm to the third parties.
(C) The residue, if any, shall be divided among the partners in their profit sharing ratio.
(D) In paying to each partner proportionately what is due to him on account of capital.
Choose the correct answer from the options given below:
Solution
Section 48 fixes the order: outside creditors first (B), then partners' loans and advances (A), then partners' capitals (D), and any residue is shared in the profit sharing ratio (C).
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