the business assets of an organisation amount to Rs 50,000 but the debts that remain unpaid ares Rs 80,000 . what courses of action can the creditors that if the organisation is a sole proprietorship? give reason..
Answers
Explanation:
(a) 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. In sole properties the whole profit of the business enjoyed by the sole trader alone and there be any loss , he must bear the whole of it. He owns all and risks all.
(b) The organization is a partnership firm with Antony and akhbar as partners. Creditors can approach any one of them or both of the partner for repayment of debt.
Every partner is liable jointly with all other
partners and also severally , for all acts of firm done while he is a partner. A creditor is entitled to recover his loan even from the personal assest of the partners.
Question was incomplete , maybe answer differ :-
This also must be your answer :-
(a) They can claim over the personal property of sole proprietor as his liability is unlimited.
(b) Creditors can approach both Anthony and Akbar and they are liable to pay back in their profit sharing ratio but in case one of the partners becomes insolvent then creditor can 'am claim from only one partner also.