Chapter 12, Problem 12E

To determine

Concept Introduction;

General Partnership: A general partnership is an unlimited liability partnership, under which each partner’s liability is unlimited and each partner is liable for any amount of contribution or liability required to be paid for the business of the partnership firm.

Limited Partnership: Limited partnership is the form of partnership having more than one owner. It is a type of partnership under which a partner has unlimited liability and other partners have limited liabilities. It limits the liability of a limited partner to the extent of his capital contribution or a specified amount. The partner with limited liability shall not be liable for any contribution over and above the limit.

To determine: The contribution of each partner in case of Capital deficiency