The partners' profit and loss sharing ratio is 2:3:5, respectively.
-If the D, E, and F Partnership is liquidated and the equipment is worthless, the creditors will look to what partner's personal assets for settlement of the creditors' claims?

Question

The partners' profit and loss sharing ratio is 2:3:5, respectively. 
-If the D, E, and F Partnership is liquidated and the equipment is worthless, the creditors will look to what partner's personal assets for settlement of the creditors' claims?

Quizplus · Accepted Answer

In a general partnership, all partners are personally liable for the debts of the partnership. Therefore, if the partnership is liquidated and the partnership assets are insufficient to cover the debts, creditors can seek repayment from the personal assets of all partners (D, E, and F in this case).

The Partners' Profit and Loss Sharing Ratio Is 2:3:5, Respectively