Question
On dissolution, A, B, C share profits in 3:2:1. Their
capitals are ₹30,000, ₹20,000, ₹10,000. C is insolvent and contributes only ₹4,000. Loss on realisation = ₹12,000. Apply Garner v. Murray to find final payment to A.Solution
Realisation loss = 12,000 shared in ratio 3:2:1 = 6,000, 4,000, 2,000. Adjusted capitals = A 24,000, B 16,000, C 8,000. C brings only 4,000 → deficiency = 4,000. Deficiency shared by A & B in ratio of capitals (30,000:20,000 = 3:2). A bears 2,400; B bears 1,600. Final = 24,000 – 2,400 = 21,600
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