Which of the following are true in respect of Dissolution of a Partnership firm :
(A) The Assets of the firm, shall be applied, firstly for paying the debts of the firms to the third parties.
(B) When the partner becomes insane, the partnership firm can be dissolved.
(C) The nature of Realisation Account is nominal Account.
(D) There is no difference in the treatment of Partner's Loan and his/her spouse loan.
(E) Realisation Profit/Loss is distributed in the Capital Ratio when the deed is silent.
Choose the correct answer from the options given below :

Correct option is C

In the dissolution of a partnership firm,
(A) assets are used first for paying third-party debts,
(B) insanity of a partner can be a ground for dissolution
(C) the Realisation Account is a nominal account used to record the disposal of assets and payment of liabilities during dissolution.