Question

Q 12.3: The Unitas, Sayers, and Blanda partnership is terminated when the claims of company creditors exceed partnership assets by $50,000. The capital balances for Unitas, Sayers, and Blanda are $35,000, $5,000, and $0, respectively. The original claims of the creditors were negotiated by Sayers and Blanda. Identify the partner(s) personally and individually liable for all partnership liabilities.

Answer 1

The Sayers and Blanda are personally and individually liable for all partnership liabilities.

Step-by-step explanation:

From the scenario, Sayers and Blanda are the general partners, while Unitas appears to be a limited partner. Thus, only the general partners, who are always active in the business, are responsible for the partnership liabilities because the liability of Unitas is limited to the capital he contributed to the partnership. First, Blanda will make good his deficiency in capital, and then, he and Sayers will redeem the remaining liability.