Question

At the time of the dissolution of a partnership firm in which X, Y and Z were partners sharing profit in 2:2:1 ratio, the following information was made available. Arrange them in the sequence in which they will be paid.
(A) A's Loan to the firm Rs 50,000
(B) Creditors Rs 2,00,000
(C) A's Capital Rs 2,50,000 , B's Capital Rs 2,00,000 and C's Capital Rs 1,00,000
(D) Balance available after settlement of all the stakeholders.
Choose the correct answer from the options given below:

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

Hint:

Order on dissolution: outside creditors, then partner loans, then partner capitals, then the surplus balance.

Answer 1

The Correct Option is C

Step 1: Think about who has the stronger claim
Outsiders lent money or gave goods on credit, so their claim is the strongest. Partners are owners, so their claims come after outsiders. Among the claims of partners, a loan is a debt and capital is an ownership stake, so loan comes before capital.

Step 2: Rank the four items
Rank 1: creditors Rs 2,00,000 (B).
Rank 2: A's loan Rs 50,000 (A).
Rank 3: capitals of partners (C).
Rank 4: leftover balance (D).

Step 3: Match with an option
The ranking B, A, C, D is option 3.

Final Answer:
Option 3 is correct. \[ \boxed{\text{Option 3}} \]