if the firm is dissolved the partner's personal assets are first used for payment of
A) personal liabilities
B) Firm's liabilities
C) any of a or b
D) none of theese

Dear Student,
Option (C) is the correct answer. 
Partnership firm does not have separate legal entity. In case of dissolution of a firm, partner's personal assets can be used to pay the firm's liabilities,if the firm cannot pay its outside liabilities by utilisation of assets.
Moreover, a person's personal assets can always be used for the payment of his personal liabilities.
Hence, incase of dissolution of a firm, a person's personal assets can be used to pay any liability first. Whichever liability arises first, personal or firm's liability, can be paid first.
Regards