On dissolution of the firm, any surplus remaining after discharging all liabilities and payment to partners for their capital balances is:

a.

Distributed to partners in equal ratio

b.

Distributed to partners in their profit sharing ratio

c.

None of these

d.

Distributed to partners in their capital ratio

_______________________________________________________________________________________________________

Undistributed profits and losses _____ transferred to all the partners account at the time of retirement of a partner.

a.

May be

b.

Should not be

c.

May not be

d.

Should be