In which order are partnership assetsdistributed to the partners?O Capital balances, loans, profitsO Loans, profits, capital balancesO Profits, capital balances, loansLoans, capital balances, profits In the liquidation of a partnership, a loan froma partnerO Will be closed to the partner's drawing accountO Will be written offO Will be paid off at the same time as payment ofother liabilities of the partnershipO Will be paid off before distribution of cash topartners for their capital investments

ln case of partnership there is agreement between the partners. they bring capital for operations…

In which order are partnership assets distributed to the partners? Capital balances, loans, profits O Loans, profits, capital balances O Profits, capital balances, loans O Loans, capital balances, profits

In which order are partnership assets distributed to the partners? Capital balances, loans, profits O Loans, profits, capital balances O Profits, capital balances, loans O Loans, capital balances, profits

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In which order are partnership assets
distributed to the partners?
O Capital balances, loans, profits
O Loans, profits, capital balances
O Profits, capital balances, loans
Loans, capital balances, profits

In the liquidation of a partnership, a loan from
a partner
O Will be closed to the partner's drawing account
O Will be written off
O Will be paid off at the same time as payment of
other liabilities of the partnership
O Will be paid off before distribution of cash to
partners for their capital investments

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