alleryStart learning →Assets fetch 70,000. Outsiders are owed 50,000, partner X's loan is 30,000. X's loan repaid?
A10,000
B20,000
C30,000
D50,000
Answer & Solution
Correct answer: B. 20,000
After 50,000 to outsiders only 20,000 remains, and it goes to X's loan, which ranks before capital.
Keep practising Dissolution of a Firm
Browse all Dissolution of a Firm questions for CA Foundation, or explore more Accounting topics.
Related questions
A partner rescinds a partnership for fraud. What does he hold over the surplus assets?Until winding up is complete, a partner may restrain use of what for personal gain?Subject to contract, the adjudication of one partner as insolvent does what?A firm runs several adventures and one becomes illegal. What of the lawful ones?What does an event making the firm's business unlawful do to the firm?A loss of 30,000 arises and the firm has a profit reserve of 10,000. How much falls on capCash from sale is 90,000 and outside liabilities are 30,000. How much reaches partners?Capitals are A 50,000, B 30,000, sharing equally. After a loss of 20,000, what is A's capi