Question : Private property of each partner is applied first towards the payment of his _________and surplus, if any, is applied towards payment of_____________.
Option 1: Private debt, Firm's debts
Option 2: Firm's debt, Private debts
Option 3: Partner's final payments
Option 4: None of the above
Answer (1)
20th Jan, 2024
Correct Answer: Private debt, Firm's debts
Solution : Answer = Private debt, Firm's debts
In a partnership, each partner's private property is first used to pay off their personal debts. Any surplus remaining is then applied towards paying off the firm's debts, ensuring that personal obligations are settled before addressing the partnership's liabilities.
Hence, the correct option is 1.
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