Write the sequence of treating losses as per section 48 of the Partnership Act 1932.A. Close Realisation AccountB. Payout of Partners CapitalC. Pay out of ProfitsD. Paid by the partners individually in their profits sharing ratioChoose the most appropriate answer from the options given below:a)A, B, C, Db)A, C, B, Dc)A, D, C, Bd)A, D, B, CCorrect answer is option 'B'. Can you explain this answer?

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Write the sequence of treating losses as per section 48 of the Partnership Act 1932.

A. Close Realisation Account
B. Payout of Partners Capital
C. Pay out of Profits
D. Paid by the partners individually in their profits sharing ratio

Choose the most appropriate answer from the options given below:

a)
A, B, C, D
b)
A, C, B, D
c)
A, D, C, B
d)
A, D, B, C

Correct answer is option 'B'. Can you explain this answer?

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Write the sequence of treating losses as per section 48 of the Partner...

The correct answer is B:

As per section 48 of the Partnership Act 1932, the sequence of treating losses is as follows:

A. Close Realisation Account

Realisation Account is prepared to ascertain the profit or loss on the sale of assets and payment of liabilities during the dissolution process.
After the sale of assets and payment of liabilities, the Realisation Account is closed, and the net balance (profit or loss) is transferred to the partners' capital accounts.

C. Pay out of Profits

If there is a profit after the Realisation Account is closed, it is distributed among the partners in their profit-sharing ratio.
This profit is credited to the partners' capital accounts.

B. Payout of Partners Capital

After the distribution of profit, partners' capital accounts show their respective balances, which represent the amount payable to each partner.
The partners' capital is paid out to them, barring any insolvent partner(s) whose capital remains in the firm.

D. Paid by the partners individually in their profit-sharing ratio

If there is a loss after the Realisation Account is closed, it is borne by the partners individually in their profit-sharing ratio.
This loss is debited to the partners' capital accounts.
In case a partner's capital account has insufficient balance to bear the loss, the deficit is to be paid by the partner individually.

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Write the sequence of treating losses as per section 48 of the Partnership Act 1932.A. Close Realisation AccountB. Payout of Partners CapitalC. Pay out of ProfitsD. Paid by the partners individually in their profits sharing ratioChoose the most appropriate answer from the options given below:a)A, B, C, Db)A, C, B, Dc)A, D, C, Bd)A, D, B, CCorrect answer is option 'B'. Can you explain this answer?

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