Question

Varun and arun are partners in firm sharing P&L equally on the date of dissolution of partnership firm varun's wife loans was ₹45000 whereas arun's loan was ₹65000 which loan will br paid first and why?

Answer 1

Varun's wife loan will be paid first because she is outsider for the firm and Arun is partner of the firm.

At the time of dissolution of the firm outsider's loans will be paid first.

At the time of liquidation , the series in which creditors are paid :

(1) secured creditors

(2) unsecured creditors

(3) partners