Question

The business assets of a firm amount to Rs 22,000 but the liabilities stand at Rs 47,000. What course

of action can the creditors take if it is a sole proprietorship firm?

(a). Creditors can settle their account only to the extent of business assets available i.e., Rs 22,000.

(b). Besides using business assets of Rs 22,000, creditors can use the personal property of the

owners to the extent of Rs 25,000.

(c). Creditors can settle their account only to the extent of owner’s personal assets available.

(d). None of these.​

Answer 1

Answer:

(c). Creditors can settle their account only to the extent of owner’s personal assets available.

Answer 2

Explanation:

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