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Realisation of Assets and Liabilities - Comprehensive

The assets of...

Question

The assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be applied first in ___

A

None of these

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B

shall be divided among the partners in their profit sharing ratio.

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C

In paying the debts of the firm to the third parties

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D

In paying each partner proportionately what is due to him

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Solution

The correct option is C
In paying the debts of the firm to the third parties

The assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be applied first in paying the debts of the firm to the third parties.

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Q. The amount realised from assets along with contribution from partners, if required, shall be utilised first to pay off the outside ________ of the firm.

Q. If the partnership deed is _______ about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners, irrespective of their capital contribution in the firm.

Q. In case of winding up of firm if the asset of the firm are not sufficient to pay the partner capital, the deficiency in capital _______________________.

Q. Upon dissolution, which is the proper order for application of the Firm's assets?
I. Payment of partners loan
II. In paying the debts of the firm to third parties
III. Distribution of surplus to partners in profit sharing ratio
IV. Payment of partners capital
Select the correct answer from the options given.

Q. In settling the accounts of a firm after its dissolution, the assets of the firm shall be applied first in paying ___________.

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