Question

Upon dissolution which is the proper order for application of the firm's assets?
Payment of Partner's Loan.
II. In paying the debts of the firm to third parties!
III. Distribution of Surplus to partners in profit sharing ratio a
IV. Payment of Partners capital. ​

Answer 1

II. In paying the debts of the firm to third parties!

Payment of Partner's Loan.

IV. Payment of Partners capital.

III. Distribution of Surplus to partners in profit sharing ratio a