When proceeds from the sale of partnership assets are being distributed during winding up,which of the following is settled first?
A)Payment to partners to the extent of their capital contributions
B)Payment to creditors of the partnership
C)Payment to partners to the extent of their share of profits
D)Payment to creditors after charging the partners' shares of losses

Question

Quizplus · Accepted Answer

The claims of creditors must be satisfied first,the remaining proceeds from the sale of partnership assets will be distributed to the partners according to the net amounts in their capital accounts.

When Proceeds from the Sale of Partnership Assets Are Being