Question

When liabilities is paid first of all,after the sale of assets?

Answer 1

$\star \bf\large\underline\green{Aɳʂɯҽɾ}$

The proceeds from the sale of assets along with the contribution of the partners at the time of dissolution of the firm are first used up to pay off the external liabilities, i.e., the creditors, bank loans, bank overdrafts, bills payable etc.