Yasir and Rahool Are Partners in an Accounting Firm

question 12

True/False

Yasir and Rahool are partners in an accounting firm. Each contributed $10 000 in capital and Yasir has loaned the partnership a further $15 000. The partnership also owes its bank $25 000. Yasir and Rahool want to dissolve the partnership. They plan to pay themselves back $10 000 each first, then distribute $25 000 to the bank, and finally pay back Yasir's loan if there is enough money left. This plan for distribution is consistent with partnership law.

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Definitions:

Lesioning

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