When a partner is unable to pay a capital deficiency the, Accounting Basics

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When a partner is unable to pay a capital deficiency the

When a partner is unable to pay a capital deficiency: The remaining partners must wait for the deficiency to be paid before cash is distributed. The partner must take out a loan to cover the deficient balance. The deficient partner is relieved of the liability. The partnership ends before distribution of cash. The deficiency is absorbed by the remaining partners before distribution of cash. References

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Accounting Basics: When a partner is unable to pay a capital deficiency the

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