Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

In a partnership business, A and B are partners and the firm is not able to pay the debts of the firm. Firm want to pay debts of firm from their private assets to which B denies but A agrees. Who is right in this situation?

Options:

A is right

B is right

Both are wrong

None of these

Correct Answer:

A is right

Explanation:

Partners of the partnership firms possess unlimited liability for their total debts and legal consequences. In this, their assets are liable to get attached to meet the debts and liabilities of the firm.