Question : Debts which the firm owes to outsiders are known as the firm's debts, whereas the debts which a partner owes in his personal capacity are known as___________.
Option 1: Firm's debt
Option 2: Private debt
Option 3: Capital
Option 4: None of the above
Correct Answer: Private debt
Solution : Answer = Private debt
Private debt refers to the obligations or loans that an individual partner personally owes, distinct from the debts of the firm itself. It reflects the personal financial liabilities of the partner rather than those of the business entity. Hence, the correct option is 2.
Question : Debt which the firm owes to outsiders are called
Question : On dissolution of the firm, what payment is made first from the personal assets of a partner?
Question : Private property of each partner is applied first towards the payment of his _________and surplus, if any, is applied towards payment of_____________.
Question : Amount realised from the sale of private estate of partners will be used first to pay the _________.
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