banner_ad

Applicability of garner vs murray rule

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
09 May 2017 While solving sums on dissolution of partnership firm after insolvency of one partner, I noticed that the Garner vs Murray rule concerning adjusting of fixed capitals for any reserves before distributing deficiency of insolvent partner between solvent partners has not been followed in certain sums. From the point of view of exams, should it be followed only when the question specifically asks to do so, or should it be followed irrespective?
Profile Image

Amol S Joglekar

Profile Image

Amol S Joglekar (Expert)
09 May 2017 Garner Vs Murray rule is to be followed if the debit balance of the Capital account of any of the partners is NOT recoverable from the said partner.
There could be cases, where such a debit balance may not be required to be recovered.... may be due to higher market value OR discount given by creditors and so on....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
07 June 2026
Tax Associate

Rajkumar Jain & Co.

Ahmedabad

Graduate (Any)

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details