Question

What is the preferred method of resolving a partner's deficit balance, according to the Uniform Partnership Act?

a. Panners never have a deficit balance.
b. The other partners must contribute personal assets to cover the defict baliance.
c. The partnershlip must sell assets In order to cover the deficlt balance.
d. The partner with a deficlt balance must contribute personal assets to cover the deficit balance.
e. The partner with a deficlt balance contributes personal assets only If those personal assets exceed personal lablties.

Answer 1

e. The partner with a deficlt balance contributes personal assets only If those personal assets exceed personal lablties.

Step-by-step explanation:

The Uniform Partnership Act is a provision that resolves conflicts in a partnership that is not addressed in the partnership agreement.

The Act is used mostly with small and informal partnerships.

It has been adopted in all states except Louisiana.

Partners must settle their debts in order to redeem their interest in the partnership.

UPA provides that partner with deficit contributes personal assets only If those personal assets exceed personal liabilities.