Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Dissolution of a Partnership Firm › After outside debts, the next claim paid from th…
After outside debts, the next claim paid from the firm's assets is:
ASurplus in profit ratio
BCapital of each partner
CRealisation expenses of the firm
DLoan or advance of each partner
Answer & Solution
Correct answer: D. Loan or advance of each partner
Advances by partners, as distinct from capital, rank after outsiders and before capital.
Related questions
Creditors of Rs.20,000 are paid 2% less. How much is paid to them?Sita, Rita and Meeta share 2:2:1. A realisation profit of Rs.5,000 gives Meeta:Monika (capital Rs.11,500, ratio 3:2) gets 2/5 of Rs.2,925 profit and of Rs.13,500 reserveSupriya and Monika share 3:2. A reserve of Rs.13,500 is distributed. Monika gets:Supriya and Monika share profit 3:2. Realisation profit is Rs.2,925. Supriya gets:Debtors of Rs.21,500 are realised at a 5% discount. How much is received?A loan given by the firm to a partner is repaid. The entry is:A loss on realisation is recorded by: