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Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Dissolution of a Partnership Firm › If the funds cannot fully repay partners' loans,…

If the funds cannot fully repay partners' loans, they are paid:

AIn order of date
BFrom private assets
CIn full to one partner
DProportionately
Answer & Solution
Correct answer: D. Proportionately
Inadequate funds are shared among the lending partners in proportion to the amounts due.
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