WAEC - Accounts Principles Of Accounts (2013 - No. 42)
Upon the dissolution of partnership business, the party to be settled first out of the proceeds realized is
unsecured creditors
partner's loan and advances
secured creditors
partners' capital
Explanation
A secured creditor is generally a bank or other asset-based lender that holds a fixed or floating charge over a business asset or assets. When a business becomes insolvent, sale of the specific asset over which security is held provides repayment for this category of creditor.
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