{"id":45954,"date":"2024-04-15T22:05:25","date_gmt":"2024-04-15T22:05:25","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=45954"},"modified":"2024-04-15T22:05:25","modified_gmt":"2024-04-15T22:05:25","slug":"in-settling-the-accounts-of-a-firm-after-dissolution-losses-including-deficiencies-of-capital-shall-be-paid-in-which-sequence-1-by-the-partners-individually-in-profit-sharing-ratio-2-out-of-profi","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-settling-the-accounts-of-a-firm-after-dissolution-losses-including-deficiencies-of-capital-shall-be-paid-in-which-sequence-1-by-the-partners-individually-in-profit-sharing-ratio-2-out-of-profi\/","title":{"rendered":"In settling the accounts of a firm after dissolution losses including deficiencies of capital, shall be paid in which sequence? 1. By the partners individually in profit sharing ratio. 2. Out of profit. 3. Out of capital. Select the correct answer:"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9771a569913\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    1, 2 and 3                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    2, 1 and 3                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    3, 2 and 1                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    2, 3 and 1                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. 2, 1 and 3<\/strong><\/p>\n<p>The sequence of payment of losses and deficiencies of capital in settling the accounts of a firm after dissolution is as follows:<\/p>\n<ol>\n<li>Out of profit.<\/li>\n<li>By the partners individually in profit sharing ratio.<\/li>\n<li>Out of capital.<\/li>\n<\/ol>\n<p>This is because the first step is to see if there is any profit left in the firm. If there is, then this profit should be used to pay off any losses or deficiencies of capital. If there is no profit, then the partners must pay off the losses or deficiencies of capital in their profit sharing ratio. If the partners are unable to pay off the losses or deficiencies of capital, then their capital is used to pay off the remaining amount.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li>Option 1: By the partners individually in profit sharing ratio.<\/li>\n<\/ul>\n<p>This option is incorrect because it is not the first step in the sequence of payment of losses and deficiencies of capital. The first step is to see if there is any profit left in the firm. If there is, then this profit should be used to pay off any losses or deficiencies of capital. If there is no profit, <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> then the partners must pay off the losses or deficiencies of capital in their profit sharing ratio.<\/p>\n<ul>\n<li>Option 2: Out <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> of profit.<\/li>\n<\/ul>\n<p>This option is correct because it is the first step in the sequence of payment of losses and deficiencies of capital. If there is any profit left in the firm, then this profit should be used to pay off any losses or deficiencies of capital.<\/p>\n<ul>\n<li>Option 3: Out of capital.<\/li>\n<\/ul>\n<p>This option is correct because it is the third step in the sequence of payment of losses and deficiencies of capital. If there is no profit left in the firm, then the partners must pay off the losses or deficiencies of capital in their profit sharing ratio. If the partners are unable to pay off the losses or deficiencies of capital, then their capital is used to pay off the remaining amount.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In settling the accounts of a firm after dissolution losses including deficiencies of capital, shall be paid in which sequence? 1. By the partners individually in profit sharing ratio. 2. Out of profit. 3. Out of capital. 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