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Question
Choose the correct order in which a partnership firm, at the time of its dissolution, will apply the amount realised from the sale of its assets, including any amount contributed by the partners, towards the payment of:
P: Partners' loan
Q: Firm's debts
R: Balance of partners' capital
S: Surplus divided amongst the partners in their profit-sharing ratio
Options
P, Q, R, S
Q, P, S, R
S, P, Q, R
Q, P, R, S
Solution
Q, P, R, S
Explanation:
The sequence in which the funds raised from realised on assets, in the event of dissolution is used are as follows:
Q: Firms debts
P: Partners' loan
R: Balance of partners' capital
S: Surplus divided amongst the partners in their profit-sharing ratio.
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Dissolution expenses are credited to ______.
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Balance sheet as on 31st March 2013
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital A/c | Machinery | 50000 | ||
| Jay | 60000 | Stock | 20000 | |
| Ajay | 20000 | Debtors | 55000 | 52000 |
| Vijay | 20000 | Less : R.D.D. | (3000) | |
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| 168000 | 168000 | |||
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