Q1234
In case of dissolution of the partnership, if a partner's capital account shows a debit balance and he subsequently turns out to be insolvent, what will be the accounting treatment? (Consider the case laws)
A.
The loss has to be borne in the capital ratio by the solvent partners
AnswerB.
The loss has to be borne in the existing profit sharing ratio
C.
The loss has to be borne in the adjusted profit sharing ratio after insolvency
D.
The loss has to be borne in the sacrificing ratio of the solvent partners
E.
The loss has to be equally distributed among the solvent partners
Answer: Option A
Solution
Answer: Option A
No explanation is given for this question Let's Discuss on Board