In a partnership liquidation,
A)creditors should be paid before partners
B)gains and losses on the sale of assets are allocated to the partners on the basis of their current capital balances
C)the last entry credits the partners' Capital accounts
D)the partners' accounts are settled on the basis of the stated ratios

Question

Quizplus · Accepted Answer

In a partnership liquidation, creditors are paid before partners to satisfy all outstanding liabilities before distributing any remaining assets to the partners.

In a Partnership Liquidation