Question

27. The business assets of an organisation amount to Rs 50,000 but the debts that remain unpaid are Rs
80,000. What course of action can the creditors take if.
a. The organisation is a sole properitor form of business.
b. The organisation is a partnership firm with X and Y are partners sharing profit and ratio equally?
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Answer 1

Answer:

The course of action the creditors can take if the organisation is a sole proprietorship firm that creditors will approach to the Proprietor and if he fails to pay the remaining debt, they can arrange it from his personal assets

Explanation:

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