The Barrel & Wine partnership is being wound up and liquidated.Net assets are to be distributed according to which of the following order of priority?
A)First to creditors who are not partners,then to creditors who are partners
B)First to all creditors,then to partners as per their capital accounts
C)First to partners per their capital accounts,then to all creditors
D)First to partners who have made loans to the partnership,then to all other creditors

Question

Quizplus · Accepted Answer

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

The Barrel & Wine Partnership Is Being Wound Up and Liquidated.Net