In a liquidation,one partner may have to make up the deficit in another partner's account.

Question

Quizplus · Accepted Answer

In a liquidation, if the assets are not enough to cover the liabilities, then the partners' accounts are reduced to pay off the debts. If one partner's account is not enough to cover their share of the debt, then the other partner(s) may have to create a deficit in their own account to make up for it. This is known as a deficit restoration obligation. Therefore, the statement is true.

In a Liquidation,one Partner May Have to Make Up the Deficit