At the time of dissolution of firm,’ loan of partners’(loans given by partners to the firm) is paid out of the amount realized on sale of assets:
A. After making the payment of loans given by third party
B. After making payment of balance of Capital Accounts of partners
C. After making the payment of above (a) and (b)
D. Before the payment of loans given by third party
Answer:A
At the time of dissolution of firm,’ loan of partners’(loans given by partners to the firm) is paid out of the amount realized on sale of assets:
A. After making the payment of loans given by third party B. After making payment of balance of Capital Accounts of partners C. After making the payment of above (a) and (b) D. Before the payment of loans given by third party