Kelly, Lars, and Mona agreed to be partners in Neighborhood Deliveries ( ND), all splitting the profits equally. Kelly contributed 70% of the capital upon formation of the partnership. Later, the partners agreed to dissolve the partnership as it was not as profitable as they had expected, and its liabilities were greater than its assets. The losses are paid by: A) All the partners in proportion to their capital contributions. B) All the partners in proportion to their share of the profits. C) Kelly alone because she contributed the most capital. D) Lars and Mona because they contributed the least amount of capital.
Kelly, Lars, and Mona agreed to be partners in Neighborhood Deliveries ( ND), all splitting the profits equally. Kelly contributed 70% of the capital upon formation of the
Step by step
Solved in 3 steps
