Question

Arrange the following in the sequence of payment at dissolution of a firm: (A) The debts of the firm to the third parties.
(B) Partner's loan to the firm.
(C) Partner's capital.
(D) Remaining balance divided among partners in profit sharing ratio.

• A. (A), (B), (C), (D)
• B. (B), (C), (D), (A)
• C. (A), (D), (C), (B)
• D. (D), (B), (C), (A)

Hint:

Always follow the settlement order: Outside liabilities → Partner's loans → Partner's capitals → Balance in profit ratio.

Answer 1

The Correct Option is A

Dissolution payment hierarchy per Section 48 of the Partnership Act:

1. External creditors/third parties.
2. Partners' loans to the firm.
3. Partners' capital contributions.
4. Remaining surplus distributed according to profit-sharing ratios.

Application order for a question:

1. (A) first
2. (B) second
3. (C) third
4. (D) last

Final Answer: \[ \boxed{(A), (B), (C), (D)} \]