If enough partnership cash or other assets are available to pay the withdrawing partner, a liability may be created for the amount owed the withdrawing partner.

Question

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If a partner is withdrawing from a partnership and there is enough cash or assets available, then the partnership may create a liability to pay the amount owed to the withdrawing partner. This liability represents an obligation of the partnership to pay the partner for their share of the partnership.

If Enough Partnership Cash or Other Assets Are Available to Pay