The process of paying all debts of a partnership and distributing the remaining proceeds to the partners at the end of a partnership is called:

Question

Quizplus · Accepted Answer

Winding up refers to the process of paying off all outstanding debts and liquidating the assets of a partnership. This process results in the distribution of any remaining proceeds to the partners. Terminating a partnership refers to the act of ending the partnership, which may or may not involve winding up. Dissociation refers to the withdrawal of one or more partners from the partnership. Distribution is a general term that can refer to the allocation of profits, losses, or assets among partners, but it does not specifically refer to the end of a partnership. Therefore, the best answer is C - winding up.

The Process of Paying All Debts of a Partnership and Distributing