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Under Garner versus Murray rule, the capital deficiency of an insolvent partner is related to what?

Answer and explanation

Correct answer: Debit balance of capital account

Deficiency of an insolvent partner arises from debit balance of his capital account. The rule tells who will bear it.

Related tags

Garner Versus MurrayInsolvent PartnerDeficiencyPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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