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Balance of money left shall be distributuion among partner in their profit sharing ratio.

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Introduction:
When a firm is dissolved, its assets are liquidated to pay off its liabilities. Liabilities represent the amount owed by the firm to its creditors. The order of payment is determined by the priority given to different types of liabilities. The liabilities that are paid last are known as "unsecured liabilities" or "subordinated liabilities." These liabilities are given the least priority in the distribution of assets.

Priority of Liabilities:
The priority of liabilities in case of dissolution of a firm is generally as follows:

1. Secured Creditors:
Secured creditors have a first claim on the assets that were pledged as collateral for the loan. They hold security against their loan, such as mortgages, charges, or liens on specific assets of the firm. They are paid first from the proceeds of the sale of the secured assets.

2. Preferential Creditors:
Preferential creditors are given the next priority after secured creditors. They include employees' wages, salaries, and other statutory dues like provident fund contributions, taxes owed to the government, and unpaid social security contributions. These liabilities are generally paid before any other unsecured liabilities.

3. Unsecured Creditors:
Unsecured creditors are the general creditors who do not have any security or preferential status. They include suppliers, trade creditors, banks, and other lenders who have provided loans without any specific security. They are paid after the secured and preferential creditors.

4. Partners' Capital:
Partners' capital represents the amount invested by the partners in the firm. It is considered a liability towards the partners until all other liabilities are paid off. Partners' capital is paid after all the external liabilities have been settled.

5. Partners' Loans:
Partners' loans are the loans given by partners to the firm. These loans are usually repaid after all other liabilities, including partners' capital, have been settled. Partners' loans have lower priority compared to other liabilities.

Conclusion:
In the case of dissolution of a firm, the liabilities that are paid last are generally unsecured creditors, partners' capital, and partners' loans. The order of payment is determined by the priority given to different types of liabilities, such as secured creditors, preferential creditors, and unsecured creditors. It is important for creditors and partners to understand the priority of liabilities to assess their potential recovery in case of firm dissolution.