The partnership of Jewel, Maggie, and Waters was insolvent and will be unable to

Question

The partnership of Jewel, Maggie, and Waters was insolvent and will be unable to pay $50,000 in liabilities currently due. What recourse is available to the partnership's creditors?        They must present their claims to the three partners in the order of the partners' capital account balances.
       They must try to obtain a payment from the partner with the largest capital account balance.
       They may seek remuneration from any partner they choose.
       They cannot seek remuneration from the partners as individuals.
       They must present equal claims to the three partners as individuals. The partnership of Jewel, Maggie, and Waters was insolvent and will be unable to pay $50,000 in liabilities currently due. What recourse is available to the partnership's creditors?        They must present their claims to the three partners in the order of the partners' capital account balances.
       They must try to obtain a payment from the partner with the largest capital account balance.
       They may seek remuneration from any partner they choose.
       They cannot seek remuneration from the partners as individuals.
       They must present equal claims to the three partners as individuals.

Explanation / Answer

Last option is correct.

When a partnership becomes insolvent, the creditors try to recover their money from the partnership considering all partners as equal. Percentage of capital owned by each partner is outside the scope of consideration of the creditors.

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