A capital deficiency means that: The partnership has been sold at a loss. At least one partner has a debit balance in his/her capital account. The partnership has a loss. At least one partner has a credit balance in his/her capital account. The partnership has more liabilities than assets.

A capital deficiency means that:

	The partnership has been sold at a loss.
	At least one partner has a debit balance in his/her capital account.
	The partnership has a loss.
	At least one partner has a credit balance in his/her capital account.
	The partnership has more liabilities than assets.

Answer
At least one partner has a debit balance in his/her capital account.