Arrange the following in the context of dissolution of partnership firm.

A. Payment of loan from Partners

B. Payment of secured outsider's liabilities

C. Realisation of assets into cash

D. Settlement of partner's capital

E. Payment of unsecured outsider's liability

Choose the correct answer from the options given below:

The correct answer is C, B, E, A, D (represented in the options list as "C, B, E, A, D, C, D, E, A").

Upon the dissolution of a partnership firm, the assets of the firm are realized and the liabilities are settled in a specific chronological order in accordance with Section 48 of the Indian Partnership Act, 1932. The step-by-step sequence is explained below:

1. Realisation of assets into cash (Step C):
Before any payments or settlements can be made, the firm must first sell and convert all its physical and financial assets into cash. Thus, the process begins with Step C.

2. Payment of secured outsider's liabilities (Step B):
Once cash is realized, third-party (outsider's) liabilities must be paid off first. Among outsider's liabilities, secured creditors hold a charge over the firm's assets and have the primary right to get paid before unsecured creditors. Therefore, payment of secured outsider's liabilities is Step B.

3. Payment of unsecured outsider's liability (Step E):
After secured external debts are cleared, any remaining external or third-party liabilities that are unsecured (such as trade creditors, bills payable, or outstanding expenses) must be paid. This corresponds to Step E.

4. Payment of loan from Partners (Step A):
After settling all external liabilities, if there is still cash remaining, loans or advances advanced by the partners to the firm are paid off. This is an internal liability but takes precedence over capital contribution. This corresponds to Step A.

5. Settlement of partner's capital (Step D):
Finally, after meeting all external liabilities and partner's loans, any remaining balance of cash is used to return the capital contributed by each partner. This is the final step, corresponding to Step D.

By arranging these steps in the correct chronological order, we get the sequence: C, B, E, A, D.