Question

if cash is insufficient to pay of all partners loan how payment is made

Answer 1

If cash is insufficient to pay off all partners' loans then the payment is made by the installment payment method.

Explanation:

• If cash is insufficient to pay off all partners' loans then the payment is made by the installment payment method.
• This payment method implies when the firm does not have sufficient resources to make a payment due to a single partner.
• Thus in this situation, the payment is made in installment and this procedure is known as the installment payment method.