Multiple choice

The surplus of Rs. 90,000 on dissolution after paying off the liabilities and debts of the partnership firm the remaining amount is distributed among partners in their profit sharing ratio.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under partnership law, any surplus remaining after paying all liabilities and debts on dissolution is distributed among partners in their profit-sharing ratio. This is the standard procedure - partners share in gains just as they share in losses.

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