Roscoe is insolvent and still owes $60,000 to his personal creditors. The personal creditors now attempt to collect from the partnership, where Roscoe has been a partner. Roscoe has a capital account balance of $15,000. His partner Jordan has a capital account balance of $25,000. The partnership has cash of $200,000 and liabilities of $160,000. How much does Roscoe’s personal creditors have a right to recover from the partnership ?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
12 Roscoe is insolvent and still owes $60,000 to his personal creditors. The personal creditors now attempt to collect from the
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