If partner X has a debit balance in capital and the partnership is dissolving which of the
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Question:
If partner X has a debit balance in capital and the partnership is dissolving which of the following statement would be true:
a. | The remaining partner who has the highest balance in his/her capital will have a personal claim on X's assets | |
b. | All partners who absorb X's debit balance each have the legal right to file a claim against X's personal assets for the full amount X owed. | |
c. | X's debit balance will be allocated to the remaining partners in proportion to their profit and loss agreement. | |
d. | X's debit balance will be allocated to the remaining partners in proportion to their respective capital account balances. |
Related Book For
Financial Accounting
ISBN: 978-0470507018
7th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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