Under the Indian Partnership Act, 1932, after payment of debts and liabilities of the firm, the surplus…
Section 46 provides that after payment of the firm's debts and liabilities, the surplus is "distributed among the partners or their representatives according to their…
Choose your answer
Under the Indian Partnership Act, 1932, after payment of debts and liabilities of the firm, the surplus shall be distributed:
Answer and explanation
Correct answer B
Section 46 provides that after payment of the firm's debts and liabilities, the surplus is "distributed among the partners or their representatives according to their rights". Equal division applies only if that is their right, and creditors have no claim to the surplus once they are paid.
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