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 The status of a partner making advances to a firm for its business in addition to his Capital, is that of
  • a)
    A partner of the Firm 
  • b)
    An employee of the Firm
  • c)
    A creditor of the Firm
  • d)
    All the above.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The status of a partner making advances to a firm for its business in ...
Yes because additional capital given by partner is liability of the firm. when any partner not given additional capital to the firm. firm take loan from any outsiders and that is creditor of the firm.
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Community Answer
The status of a partner making advances to a firm for its business in ...
It is a additional capital which need to be paid by the firm to the concerned partner .hence is a liability and the concerned partner is creditor for the firm
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The status of a partner making advances to a firm for its business in addition to his Capital, is that ofa)A partner of the Firmb)An employee of the Firmc)A creditor of the Firmd)All the above.Correct answer is option 'C'. Can you explain this answer?
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