Comparison with the claims of cleamons


The partnership of Nurr, Cleamons and Kelly was insolvent, as was Cleamons personally. The partnership had begun liquidating its assets and Cleamons' capital account had a debit balance. How would the claim of Nurr and Kelly against Cleamons be ranked in comparison with the claims of Cleamons' other creditors?

It ranks lower in priority than Cleamons' personal creditors and the creditors of the partnership

It ranks equal in priority with the claims of Cleamons' personal creditors

It ranks lower in priority than Cleamons' personal creditors but higher in priority than the creditors of the partnership

It ranks higher in priority than Cleamons' personal creditors and the creditors of the partnership

It ranks higher in priority than Cleamons' personal creditors but lower in priority than the creditors of the partnership

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Accounting Basics: Comparison with the claims of cleamons
Reference No:- TGS058798

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