Correct order of priority in settlement of liabilities and capital upon dissolution
Dear Student
The following is the order of priority in settlement of liabilities and capital upon dissolution:
i) Expense incurred on realisation of assets such as commission, cartage, brokerage etc.
ii) All outside creditors
iii) Partner’s Loan accounts
iv) Balances in Capital Accounts of partners
Regards
The following is the order of priority in settlement of liabilities and capital upon dissolution:
i) Expense incurred on realisation of assets such as commission, cartage, brokerage etc.
ii) All outside creditors
iii) Partner’s Loan accounts
iv) Balances in Capital Accounts of partners
Regards