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creditors was paid off Related: Chapter Notes - Reconstitution of a P...
At the time of dissolution of a firm, the amount received from the sale of firm's assets are utilised to pay the creditors. The deficiency or unpaid creditors amount is transferred to the Partner's Capital Account. Thus the deficiency of the creditors is borne by all the partners in their profit sharing ratio
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creditors was paid off Related: Chapter Notes - Reconstitution of a Partnership Firm: Admission of a Partner?
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