Question : Which section of partnership Act defines the rule for selling of private debts and firm’s debt at the time of dissolution ——–
Option 1: Section 59
Option 2: Section 29
Option 3: Section 49
Option 4: Section 28
Correct Answer: Section 49
Solution : As per Sec 49 Payment of firm debts and of separate debts.—Where there are joint debts due from the firm, and also separate debts due from any partner, the property of the firm shall be applied in the first instance in payment of the debts of the firm, and, if there is any surplus, then the share of each partner shall be applied in payment of his separate debts or paid to him. The separate property of any partner shall be applied first in the payment of his separate debts, and the surplus (if any) in the payment of the debts of the firm.
Hence the correct answer is option 3.
Question : According to —— the dissolution of partnership between all the partners of a firm is called dissolution of the partnership firm.
Option 1: Section 38, of Indian partnership Act 1932
Option 2: Section 39, of Indian partnership Act 1932
Option 3: Section 32, of Indian partnership Act 1932
Option 4: Section 40, of Indian Partnership Act 1932
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 : Which section of the Partnership Act specifies the mode of settlement of accounts on the dissolution of a partnership firm?
Option 1: Section 48
Option 2: Section 43
Option 3: Section 45
Option 4: Section 47
Question : The dissolution of partnership between all the partners of a firm is called:
Option 1: Reconstitution of partnership firm
Option 2: Dissolution of partnership
Option 3: Dissolution of partnership firm
Option 4: Any of the above
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