Which of the following statements is correct regarding a partner's debit capital balances?
A) The partner should make contributions to reduce the debit balance to whatever extent possible.
B) If contributions are not possible, the other partners with credit capital balances will be allocated a portion of the debit balance based on their proportionate profit-and-loss-sharing percentages.
C) Partners who absorb another's debit capital balance have a legal claim against the deficient partner.
D) All of these statements are correct.
Correct Answer:
Verified
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