Question

In the liquidation of a partnership, any partner who has a capital deficiency Group of answer choices has a personal debt to the partnership for the amount of the deficiency. is automatically terminated as a partner. will receive a cash distribution only on the basis of his or her income-sharing ratio. is not obligated to make up the capital deficiency.

Answer 1

Answer: A. has a personal debt to the partnership for the amount of the deficiency

Step-by-step explanation:

Partnership is a form of business whereby two or more people come together and manage an organization together.

Capital deficiency refers to when there's a debit balance in the capital account of a partner after the allocation of gain or loss.

In the liquidation of a partnership, any partner who has a capital deficiency has a personal debt to the partnership for the amount of the deficiency.