Which is the proper order for distribution of assets upon dissolution of a limited partnership? a. outside creditors; distributions owed to partners; capital contributions; remainder split according to distribution agreement b. outside creditors; limited partners' profits; limited partners' capital; general partners' advances; general partners' profit; general partners' capital c. limited partners' capital; outside creditors; limited partners' advances; general partners' capital and profits d. none of the above

A partnership can be dissolve at any time for any reason by the partners. The proper order for distribution of assets upon dissolution of a limited partnership outside creditors; distributions owed to partners; capital contributions; remainder split according to distribution agreement.

If dissolution is not included in the partnership agreement, the partners can make a separate dissolution agreement. The rule of the dissolution is that any remaining money or property will be distributed to each partner according to their ownership interest in the partnership.

Some accounting steps taken  to dissolve a partnership are sell noncash assets, allocate any gain or loss on the sale based on the income-sharing ratio in the partnership agreement etc.

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from the given options, the answer is b. outside creditors; limited partners' profits; limited partners' capital; general partners' advances; general partners' profit; general partners' capital

Explanation:

This happens usually when the partenrship is dissolved. Then the assets must cover all the obligations the firm has.

it starts from the external creditors, and slowly goes to Limited Partner, who has more right to recieve funds than the general partners. This is because the limited parter is only liable for his amount of contribution.

Only after satisfying all the external obligations the general partners have the ability to pay themselves!

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