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easyMCQCUET Accountancy 2025 14 May Shift 12026Accountancy
1 mark

In case of dissolution of a firm, Losses including deficiencies of capital, shall be paid first out of ....

  1. A
    Capital of partners
  2. B
    Amount provided by partners individually in thier profit sharing ratio.
  3. C
    Profit
  4. D
    Debts

Solution & Step-by-step Explanation

According to Section 48 of the Indian Partnership Act, 1932, losses (including deficiencies of capital) must be settled in a specific priority sequence:First, out of the firm's available accumulated profits.Next, out of the partners' capital balances.Lastly, if necessary, shared individually by partners in their profit-sharing proportions.

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In case of dissolution of a firm, Losses including deficiencies of capital, shall be paid first out of ....
A
Capital of partners
B
Amount provided by partners individually in thier profit sharing ratio.
C
Profit
D
Debts

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PartnershipDissolutionSettlement of Accounts

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