{"id":49905,"date":"2024-04-15T23:02:36","date_gmt":"2024-04-15T23:02:36","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49905"},"modified":"2024-04-15T23:02:36","modified_gmt":"2024-04-15T23:02:36","slug":"arrange-the-following-parties-in-the-event-of-dissolution-of-a-firm-1-secured-creditors-2-unsecured-creditors-3-partners-who-have-granted-loans-4-partners-who-have-contributed-over-and-above-prof","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/arrange-the-following-parties-in-the-event-of-dissolution-of-a-firm-1-secured-creditors-2-unsecured-creditors-3-partners-who-have-granted-loans-4-partners-who-have-contributed-over-and-above-prof\/","title":{"rendered":"Arrange the following parties in the event of dissolution of a firm. 1. Secured creditors 2. Unsecured creditors 3. Partners who have granted loans 4. Partners who have contributed over and above profit sharing ratio Select the correct answer:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;2, 1, 3, 4&#8243; option2=&#8221;1, 2, 3, 4&#8243; option3=&#8221;1, 2, 4, 3&#8243; option4=&#8221;2, 1, 4, 3&#8243; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>B. 1, 2, 3, 4<\/strong><\/p>\n<p>In the event of dissolution of a firm, the following parties are paid in the following order:<\/p>\n<ol>\n<li>Secured creditors. Secured creditors are those who have a lien on specific assets of the firm. This means that they have a legal right to seize those assets if the firm does not repay its debts.<\/li>\n<li>Unsecured creditors. Unsecured creditors are those who do not have a lien on any specific assets of the firm. They are paid after the secured creditors have been paid.<\/li>\n<li>Partners who have granted loans. Partners who have granted loans to the firm are paid after the unsecured creditors have been paid.<\/li>\n<li>Partners who have contributed over and above profit sharing ratio. Partners who have contributed over and above their profit sharing ratio are paid last.<\/li>\n<\/ol>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: 2, 1, 3, 4. This option is incorrect because it places unsecured creditors before secured creditors. Secured creditors are paid first, followed by unsecured creditors.<\/li>\n<li>Option B: 1, 2, 3, 4. This option is correct because it places secured creditors first, followed by unsecured creditors, partners who have granted loans, and partners who have contributed over and above profit sharing ratio.<\/li>\n<li>Option C: 1, 2, 4, 3. This option is incorrect because it places partners who have granted loans before unsecured creditors. Unsecured creditors are paid first, followed by partners who have granted loans.<\/li>\n<li>Option D: 2, 1, 4, 3. This option is incorrect because it places unsecured creditors before partners who have granted loans. Partners who have granted loans are paid after the unsecured creditors have been paid.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;2, 1, 3, 4&#8243; option2=&#8221;1, 2, 3, 4&#8243; option3=&#8221;1, 2, 4, 3&#8243; option4=&#8221;2, 1, 4, 3&#8243; correct=&#8221;option2&#8243;]<\/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":[],"class_list":["post-49905","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"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>Arrange the following parties in the event of dissolution of a firm. 1. Secured creditors 2. Unsecured creditors 3. Partners who have granted loans 4. 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