Question

Question #11
In piecemeal distribution,
expenses are paid first
A
Rent
B
Realisation
с
Discount
D Carriage
​

Answer 1

Answer:

Option A) Rent is correct answer.

Answer 2

Answer:

b. Realisation

Explanation: Meaning of Piecemeal Distribution

• Realization of assets one by one or part by part

• When the cash is received on realization of assets, it is

distributed among the various outside liabilities

•If cash remains it should be payable to partners in some

particular order, without waiting for the realization of all assets

of the firm.

Order of distribution

• Realization expense

• Payment of secured creditors

• Payment of preferential creditors

• Payment of outside liabilities

• Payment of Partners loan if any

• Payment to partners capita

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