Under the UPA, which of the following liabilities of a partnership has the highest priority for payment out of partnership assets?
A)Amounts owing to partners for profits.
B)Amounts owing to partners for loans or advances.
C)Amounts owing to creditors other than partners.
D)Amounts owing to partners for capital.

Question

Quizplus · Accepted Answer

Under the UPA, liabilities owed to creditors other than partners have the highest priority for payment out of partnership assets. This means that if the partnership assets are insufficient to pay all creditors, non-partner creditors will be paid before any partner receives payment for their share of capital, loans, advances, or profits. Therefore, option C is the correct choice.

Under the UPA, Which of the Following Liabilities of a Partnership