Question

In accordance with the marshaling of assets provision of the uniform partnership act, the correct ranking of the following liabilities of a partnership in order of payment is: $20,000 loan from a partner.$30,000 of profits from the last year of operations. $3,000 payable to a supplier.$100,000 in capital balances of the partners.

1. The correct order is 3,1,4,2.
• (3) $3,000 payable to a supplier. • (1)$20,000 loan from a partner.
• (4) $100,000 in capital balances of the partners. • (2)$30,000 of profits from the last year of operations.

### What is the uniform partnership act?

• The Uniform Partnership Act (UPA) governs corporate partnerships in various states in the United States.
• When a partner dissociates, the UPA provides regulations for the dissolution of the partnership.
• Several revisions to the Uniform Partnership Act have been made over the years (UPA).
• The Revised Uniform Partnership Act refers to the revised act and changes (RUPA).
• The Uniform Partnership Act also governs partnership formation, liabilities, assets, and fiduciary obligations.
Marshaling of assets:
• The process of organizing the balance sheet elements (assets and liabilities) in a specified sequence is referred to as the marshaling of assets and liabilities.
• In other words, it is the process of organizing the various assets and liabilities on a balance sheet in a particular order.
• The order is the amount owed to a supplier, the amount of a loan from a partner, the amount of the partners’ capital balances, and the number of profits from the previous year of operations.
Therefore, the correct order is 3,1,4,2.
• (3) $3,000 payable to a supplier. • (1)$20,000 loan from a partner.
• (4) $100,000 in capital balances of the partners. • (2)$30,000 of profits from the last year of operations.
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The correct question is given below:
In accordance with the marshaling of assets provision of the uniform partnership act, the correct ranking of the following liabilities of a partnership in order of payment is:
(1) $20,000 loan from a partner. (2)$30,000 of profits from the last year of operations.
(3) $3,000 payable to a supplier. (4)$100,000 in capital balances of the partners.