Deficiency of Insolvent partner will be suffered by solvent partners in their ___________ ratio.

Question

KollegeApply · Accepted Answer

Deficiency of Insolvent partner will be suffered by solvent partners in their profit-sharing ratio. Explanation: If deficiency of insolvent partner (i.e. the debit balance in the insolvent partner’s capital account) is treated as an ordinary loss, then this loss is to be borne by the other solvent partners in their profit-sharing ratio.

AChoose Your Answer