Accounting · Partnership Accounts
According to the ruling in Garner vs. Murray, a deficiency or loss arising out of a partner's insolvency at the time of dissolution should be borne by:
- 1The government authorities
- 2The creditors of the firm
- 3The solvent partners in their profit-sharing ratio
- 4The solvent partners in the ratio of their capitals✓
Correct answer
The solvent partners in the ratio of their capitals
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