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.

Answers

  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.
    Know more about the uniform partnership act here:
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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.

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