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Commerce · Q2312

Accounting

Graduate and Post Graduate · Commerce · question 2312

Q2312

As per the decision in the Garner vs Murray case, when the partner's capital accounts are fixed, any loss arising due to the capital deficiency in the insolvent partner's capital account is to be borne by solvent partners in the ratio of . . . . . . . .

A.
profit sharing ratio
B.
last agreed capital ratio
Answer
C.
sacrificing ratio
D.
gaining ratio

Answer: Option B

Solution

Answer: Option B
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