Testbook Logo
Exams SuperCoaching Test Series Skill Academy
More
English
Hindi

Question

Download Solution PDF

The assets of the Partnership firm, including any sums contributed by the partners to makeup deficiencies of capital at the time of dissolution, shall be applied in the following manner and order:

(A) In paying each partner rateably what is due to him for advances as distinguished from capital.

(B) In paying to each partner rateably what is due to him on account of capital.

(C) In paying the debts of the firm to third parties

(D) Dividing among the partners in the proportion in which they were entitled to share profits.

Choose the correct answer from the options given below:

This question was previously asked in
UGC NET Paper-2: Commerce 25th Dec 2021 Shift 2
Download PDF Attempt Online
View all UGC NET Papers >
  1. (C), (A), (B), (D)
  2. (C), (B), (A), (D)
  3. (A), (B), (C), (D)
  4. (B), (C), (A), (D)

Answer (Detailed Solution Below)

Option 1 : (C), (A), (B), (D)
Free Tests
View all Free tests >
Free
UGC NET Paper 1: Held on 21st August 2024 Shift 1
13 K Users
50 Questions 100 Marks 60 Mins
Start Now

Detailed Solution

Download Solution PDF

The correct answer is (C), (A), (B), (D)

Key Points The assets of the Partnership firm, including any sums contributed by the partners to makeup deficiencies of capital at the time of dissolution, shall be applied in the following manner and order:

  1. In paying the debts of the firm to third parties.
  2. In paying each partner rateably what is due to him for advances as distinguished from capital.
  3. In paying to each partner rateably what is due to him on account of capital.
  4. Dividing among the partners in the proportion in which they were entitled to share profits.
Download Solution PDF
Latest UGC NET Updates

Last updated on Jun 22, 2025

-> The UGC Net Admit Card has been released on its official website today.

-> The UGC NET June 2025 exam will be conducted from 25th to 29th June 2025.

-> The UGC-NET exam takes place for 85 subjects, to determine the eligibility for 'Junior Research Fellowship’ and ‘Assistant Professor’ posts, as well as for PhD. admissions.

-> The exam is conducted bi-annually - in June and December cycles.

-> The exam comprises two papers - Paper I and Paper II. Paper I consists of 50 questions and Paper II consists of 100 questions. 

-> The candidates who are preparing for the exam can check the UGC NET Previous Year Papers and UGC NET Test Series to boost their preparations.

More Dissolution of Partnership Firm Questions

Q1.Which one of the following rights is usually not available to a partner consequent to the dissolution of a firm?
Q2.When a partner takes over an unrecorded asset during dissolution, the following is credited:
Q3.On the dissolution of a firm, the amount realised from an unrecorded asset is transferred to
Q4.In the absence of any contract to the contrary, capital profit on the dissolution of a Partnership Firm is shared among partners in
Q5.The assets of the Partnership firm, including any sums contributed by the partners to makeup deficiencies of capital at the time of dissolution, shall be applied in the following manner and order: (A) In paying each partner rateably what is due to him for advances as distinguished from capital. (B) In paying to each partner rateably what is due to him on account of capital. (C) In paying the debts of the firm to third parties (D) Dividing among the partners in the proportion in which they were entitled to share profits. Choose the correct answer from the options given below:

More Partnership Questions

Q1.X and Y are partners sharing profits in the ratio of 3 ∶ 2. Z was admitted with \(\frac{1}{4}\)th shares which he acquires equally from X and Y. The new ratio will be
Q2.A, B and C are partners in the ratio of 5 ∶ 3 ∶ 2. B retires and his shares were taken by A and C in the ratio of 2 ∶ 1. The new ratio will be
Q3.A and B are partners in the ratio of 2 ∶ 1. They admit C by giving him \(\frac{1}{3}\) share. The new ratio will be
Q4.When the new partner brings his share of goodwill in cash, the amount is debited to
Q5.Arjun, Bansi and Chelsi are partners in a firm. On June 30, 2023, Chelsi died, the sales for the year 2022–23 was Rs. 30,00,000 and profits were Rs. 6,00,000. The sales for the period from April 1, 2023 to June 30, 2023 were Rs. 7,50,000. What would be the share of deceased partner in the current year’s profits?
Q6.  L, S and D are partners sharing profits in the ratio of \(\frac{2}{5},\frac{3}{7}\) and \(\frac{3}{10}\). If S retires from the firm, what will be the gain ratio of L  
Q7.Mannu and Bhanu are partners. Bhanu wants to admit his son Channu into business. Can Channu become the partner of the firm?
Q8.Mathur started a business by investing R6,76,000 as capital. After 4 months, Goyal joined the business by investing a capital of Rs. 5,07,000. A total of Rs. 2,60,000 including 25% of the total profit was given to Goyal for conducting business at the end of the year. How much profit Mathur will get?
Q9.Adesh and Bhadresh are partners sharing profits and losses in the ratio of 3 ∶ 2. Chandresh is admitted for 20% of share in profits out of which half of the share was gifted by Adesh and remaining was acquired by Chandresh from Adesh and Bhadresh in equal proportion. What would be new profit-sharing ratio?
Q10.P, R and M are Partners in a firm. They shared profit and losses in the ratio of 3 ∶ 2 ∶ 1. On 1st April, R retired. The goodwill of the firm was valued at two years purchase based on the average of last three years profits. The Profits of the last three year were as under: 2020-21 Profit Rs 2,48.000 2021-22 Loss Rs 36,000 2022-23 Profit Rs 1,48,000 It was decided that share of goodwill be adjusted in the capital Accounts of P and M. What will be the amount of Goodwill of P and M?

More Accountancy Questions

Q1.Which of these books is not related to ' Non Trading concerns ' ?
Q2.Preference shares are entitled to the following.
Q3.Ways of creating secret reserve 1. by supressing the sale 2. by undervaluing stock-intrade and goodwill 3. by charging excessive depreciation 4. by charging capital expenditure to Profit & Loss A/c 
Q4.A Bank Reconciliation Statement is a
Q5.Which of the following statements are true? 1. Prepaid rent is a Personal A/c. 2. Interest on Drawings is an income for the business. 3. Accrued income and income due but not received are same. 4. Cost of obtaining licence to carry out business is a capital expenditure.
Q6.Which of the following is not an example of Capital Reserve?
Q7.Match List–I with List–II : List I (Types of Report) List II (Example) (a) Demand Report (i) Profit & Loss A/c (b)  Responsibility Report (ii)  Inventory valuation report (c) Summary Report (iii) Inquiry of inventory status regarding overstocking (d)  Exception Report (iv) Report regarding different aspects of purchases Select the correct answer using the codes given below. 
Q8.Which of the following statements are true? 1. A company cannot purchase its own equity shares. 2. A company can issue its shares at a discount by passing a special resolution. 3. The interest rate charged on calls-in-arrear and the interest rate payable on calls-in-advance are the same as per provisions of Table-F of Schedule-I of the Companies Act, 2013. 
Q9.Match List–I with List–II : List I (Transaction) List II (Activity)  (a) Cash payments of salaries and wages 1. Investing (b) Cash proceeds from issuing shares at a premium 2. Operating (c) Payment of income tax 3. Financing (d) Tax deducted at source on interest received from subsidiary company     Select the correct answer using the codes given below. 
Q10.An accounting information system processes the financial transactions and events based on
Super Coaching
UGC NET Test Series
UGC NET Previous Year Papers
UGC NET Syllabus
UGC NET Books
Testbook Edu Solutions Pvt. Ltd.
1st & 2nd Floor, Zion Building,
Plot No. 273, Sector 10, Kharghar,
Navi Mumbai - 410210
[email protected]
Toll Free:1800 833 0800
Office Hours: 10 AM to 7 PM (all 7 days)
Company
About usCareers We are hiringTeach Online on TestbookPartnersMediaSitemap
Products
Test SeriesTestbook PassOnline CoursesOnline VideosPracticeBlogRefer & EarnBooks
Our Apps
Follow us on
Copyright © 2014-2022 Testbook Edu Solutions Pvt. Ltd.: All rights reserved
User PolicyTermsPrivacy
Get Free Access Now
Hot Links： teen patti circle teen patti palace teen patti gold real cash teen patti real cash game teen patti rules