Which of the following is true about charging a partner's capital account during distribution?
A)Losses from sale of partnership assets during winding up are not charged against a partner's capital account.
B)Partners are given the gross amount existing in their capital accounts.
C)On account of negative balance in a partner's account,other partners are under no obligation to contribute to set off the shortage.
D)If partnership creditors cannot be paid from the partnership assets,the creditors may proceed against the partners' capital accounts.

Question

Quizplus · Accepted Answer

If partnership creditors cannot be paid from the partnership assets,the creditors may proceed against the partners,including a partner who may have already received a portion of partnership assets on account of her being a creditor also.

Which of the Following Is True About Charging a Partner's