What Is the Proper Disposition of a Partnership Loan That

question 26

Multiple Choice

What is the proper disposition of a partnership loan that was made from a partner who has a debit balance in the capital account?

• A)The loan is ignored in liquidation.
• B)The loan is offset against the debit balance in the capital account.
• C)The loan is charged off to the capital accounts of all the partners in their profit and loss sharing ratios.
• D)The loan is held for payment after all other capital accounts are covered.

---

Definitions:

Transmission Oil

A type of lubricant specifically designed to protect and maintain transmission components, facilitating smooth gear shifts and longevity.

Eaton E-500

Perhaps referring to a model or product line related to Eaton Corporation's offerings, likely in the context of automotive, electrical, or hydraulic components.

Linehaul Truck

A type of truck specifically designed for transporting freight over long distances, typically between cities or over national borders.

Transmission Housing

The outer shell or casing that encloses the components of a transmission, providing protection and structural support.