Question : On dissolution of the firm, what payment is made first from the personal assets of a partner?

Option 1: Firm debts

Option 2: Private debts

Option 3: The firm's debt and private debt both

Option 4: None of the above

Question : Private property of each partner is applied first towards the payment of his _________and surplus, if any, is applied towards payment of_____________.

Option 1: Private debt, Firm's debts

Option 2: Firm's debt, Private debts

Option 3: Partner's final payments

Option 4: None of the above

Question : Debts which the firm owes to outsiders are known as the firm's debts, whereas the debts which a partner owes in his personal capacity are known as___________.

Option 1: Firm's debt

Option 2: Private debt

Option 3: Capital

Option 4: None of the above

Question : Amount realised from the sale of private estate of partners will be used first to pay the _________.

Option 1: Firm's debt

Option 2: Third party debt

Option 3: Partner's personal debt

Option 4: None of the above

Question : In the event of dissolution of a firm, the partner’s personal assets are first applied for payment of:

Option 1: The personal liabilities

Option 2: The firm’s liabilities

Option 3: Both the personal & firm’s liabilities

Option 4: The preferential & tax liabilities