When a general partner is unable to pay a capital deficiency: The partner must take out a loan to cover the deficient balance. The deficiency is divided between the remaining partners. O The creditors of the partnership must attempt to collect it from the deficient partner. The deficient partner has a personal liability to pay the deficiency to the other partners. O Both B and D.
When a general partner is unable to pay a capital deficiency: The partner must take out a loan to cover the deficient balance. The deficiency is divided between the remaining partners. O The creditors of the partnership must attempt to collect it from the deficient partner. The deficient partner has a personal liability to pay the deficiency to the other partners. O Both B and D.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:When a general partner is unable to pay a capital deficiency:
The partner must take out a loan to cover the deficient balance.
The deficiency is divided between the remaining partners.
O The creditors of the partnership must attempt to collect it from the deficient
partner.
The deficient partner has a personal liability to pay the deficiency to the other
partners.
O Both B and D.
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