Question

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.

• A. I, IV, III, II
• B. II, I, IV, III
• C. II, I, III, IV
• D. I, II, III, IV

Answer 1

Answer: (B)

II, I, IV, III

Option B is the correct answer.