Question

After payment of outside liabilities

Answer 1

Step-by-step explanation:

After paying the external liabilities out of the sale proceeds from assets on dissolution of partnership firm ,the next payment will be made to. (i) Partner's capital a/c (ii) Partner's loan a/c (iii) Partner's current a/c (iv) Creditors.

Answer 2

• Liabilities such as creditors and bills payables are deemed as fully paid after being transferred to the realisation account in the absence of any information about the payment.

OR

• The proceeds from the sale of assets, like the contributions made by the partners at the time of the firm's dissolution, are used to pay off external liabilities such as creditors, bank loans, bank overdrafts, bills payable, and so on.

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