The accounting rule in respect of loss arising due to insolvency of a Partner is dealt within the case of:
Garner vs. Murray is an English case from 1904. This case came to one of the most revered case in the history of partnership businesses and the decisions given by Mr. Justice Joyee are still used in the present day as a rule to deal with similar situations. It was also adopted into the Indian Partnership Act, 1932. It was held that the solvent partners are only liable to make good their share of deficiency, and that the remaining assets should be divided among them in the proportion of their capitals. Section 48 of Indian Partnership Act 1932 is similar to the Section 44 of the Partnership Act in Great Britain and further there has been no case law in India to deal with such situations. So, in India these are applicability with respect to following considerations: • Garner vs. Murray is applicable only when there is no agreement between the partners for sharing the deficiency in capital account of insolvent partner. • Realisation loss should be divided in the profit sharing ratio in the usual manner. • The solvent partners should bring in cash to make good the loss on realization. • Final debit balance of insolvent partner should be distributed amongst the solvent partners in proportion in their last agreed capital. • A solvent partner having debit balance in capital account will not share any loss due to insolvency of a partner.
Statements: Some dogs are cats.
No camel is a rat.
All cats are camels.
Conclusions: I. All dogs may be camels.
II. Some ...
Statement: No cooler is a fan.
All fans are ACs.
No AC is a button.
Conclusion: I. No fan is a button.
II. Some ACs are c...
Statements: Only cars are motorcycles.
No motorcycle is a bike.
Some bikes are scooters.
All scooters are jeeps.
Co...
Statements: Some reds are blues.
All blues are greens.
Some greens are not yellows.
Co...
Statement:
Only a few A are C
All A are B
Conclusion:
I. Some C are not B...
Statement:
I) No A is B
II) No B is C
III) Some D are C
IV) All D are E
Conclusion:
I) Some E are not D
II) Some A are C
III) No C is A
In the question three statements are given, followed by three conclusions, I, II and III. You have to consider the statements to be true even if it see...
In the question below there are three statements followed by two conclusions I and II. You have to take the three given statements to be true even if t...
Statements:
No book is a pencil.
All books are boards.
All boards are dusters.
No eraser is a duster.
Statements : Some cities are villages.
No village is a town.
All towns are countries.
Conclusions:I. Some towns being cities is a ...