Question

Sandy, Ramon, and Bonnie were partners. Sandy dissociated from the partnership. Bonnie and Ramon decided to continue the business. When Sandy dissociated, there was a $50,000 debt owed to Great State Bank. Which statement is correct?

A. Only Ramon and Bonnie are liable for the $50,000 debt owed to Great State Bank.
B. Sandy remains liable on the $50,000 debt owed to Great State Bank.
C. The debt is extinguished as a result of the dissociation.
D. Whether Sandy remains liable depends on whether she filed a statement of dissociation.

Answer 1

Sandy remains liable on the $50,000 debt owed to great state bank

Step-by-step explanation:

Since the $50,000 was owed to the great bank before Sandy dissocated from the partnership, he is liable on the debt owed to bank even after leaving the firm.

The debts is either shared into the partner sharing ratio while he was still on board so he can pay up his own share of the debt or other agreements are reached on how to settle the debt.