Muft Shiksha
Update

Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है

Subjects
Class 12AccountancyDissolution of a Partnership FirmClosing the BusinessEasy
0 reads0 ratings0 helpful

On dissolution of a partnership firm, from what are the external liabilities generally paid?

Answer and explanation

Correct answer: From available cash and cash realized from the sale of assets

On dissolution, external liabilities are paid from the firm’s available cash and the cash realized from selling its assets. The usual order of settlement is external debts, partners’ loans, and then partners’ capital. Therefore, fresh borrowing, profit, or an increase in capital is not the normal source of payment. Exam tip: Cash received through realization is first used to settle external liabilities.

Related tags

Partnership DissolutionExternal LiabilitiesRealisation AccountClosing BusinessClosing The BusinessDissolution Of A Partnership FirmAccountancyClass 12 Mcq
सुधार सुझाएँ / Earn

Was this question useful?

No ratings yetWrite a review / Rate this question

Student Reviews

No published reviews yet.

KEEP PRACTISING

10 more MCQs
  1. 1What is the process of permanently closing a partnership firm and ending its existence called?
  2. 2Which account is prepared at the time of dissolution of a firm to determine the profit or loss arising from the settlement of its assets and external liabilities?
  3. 3What is generally done with the assets of a partnership firm at the time of its dissolution?
  4. 4To which account is the realisation profit transferred?
  5. 5To which account is the realisation loss transferred?
  6. 6What happens to the existence of the firm after dissolution?
  7. 7Dissolution expenses are generally debited to which account?
  8. 8At the time of dissolution, if an asset is sold for ₹10,000, what amount will be credited to the Realisation Account?
  9. 9On dissolution of a firm, to whom is the final cash balance paid after settling outside liabilities and other amounts due?
  10. 10What is the main purpose of the Realisation Account at the time of dissolution of a partnership firm?
Found an issue? Help improve this questionMy reports and replies

Add Muft Shiksha to your Home Screen

In Safari, tap Share, then Add to Home Screen.