Settlement of Accounts

Which account is debited when a liability is settled during the dissolution of a partnership firm?

What is the correct order for the settlement of accounts during the dissolution of a partnership firm?

In the dissolution of a partnership firm, which liability is settled first?

Which account is prepared to ascertain the profit or loss on the realization of assets and settlement of liabilities?

What is the first step in the settlement of accounts during the dissolution of a partnership firm?

Aman and Mohan, partners of a firm, decided to dissolve the business on 31-03-22. The firm decided to pay realisation expenses of ₹1,000 on behalf of Mohan. ₹1,000 will be debited to

According to Indian Partnership Act, 1932, when the firm is dissolved, cash received on sale of assets are applied in following order:
(A) Paying to each partner proportionately what is due to him/her on account of capital
(B) In paying the secured debts of the firm to the third parties
(C) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital
(D) The residue, if any shall be divided among the partners in their profit sharing ratio
(E) In paying unsecured debt of firm to third parties
Choose the correct answer from the options given below:

Rohit a partner paid the realisation expenses of ₹ 10,000 and he was to get a remuneration of ₹ 12,000 for completing the dissolution process and realisation expenses were borne by Rohit. The amount transferred to his capital A/c will be

On Dissolution of partnership firm out of total debtors of ₹ 2,50,000, ₹ 10,000 became bad and the rest realized 70%. In the given case Bank A/c will be debited by: