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Commerce · Q627

Accounting

Graduate and Post Graduate · Commerce · question 627

Q627

Upon dissolution, which is the proper order for application of the firm's assets? 1. Payment of partner's loan. 2. In paying, the debts of the firm to third partiy. 3. Distribution of surplus to partners in profit sharing ratio. 4. Payment of partners capital. Select the correct answer:

A.
1, 4, 3 and 2
B.
2, 1, 4 and 3
C.
2, 1, 3 and 4
Answer
D.
1, 2, 3 and 4

Answer: Option C

Solution

Answer: Option C
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