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On partnership dissolution, if a partner's capital account has a debit balance and ...

On partnership dissolution, if a partner's capital account has a debit balance and the partner is insolvent, the deficiency will. in accordance with the decision of the case of the Garner V Murray. be ____________
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  • A Borne by all the partners
  • B Borne by the insolvent partner
  • C Written off
  • D Borne by the solvent
Correct Answer: Option D
Explanation:
The rule in Garner V MURRAY is that the accumulated total cash and non - cash realization, discharge the external liabilities when there is sufficient funds and the assumed loss transferred to the solvent partner.

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