A, B, C & D were in partnership sharing p/l in the ratio of 4:3:2:1 respewctively. they decided to dissolve the firm on 31 Dec. 2006, when their B/s was as follows
Liabilities Amt Assets Amt. Capital A 7000 Cash 1000 B 4000 Debtors 25000 C 8000 Stock 12000 D 3000 B/R 7000 Bank Loan 10000 Loss 15000 Loan from B 4000 Creditor 24000 ....... ....... 60000 60000 ....... ........
The Assets were realised as follows a. Debtors Rs. 25,000 b. B/R Rs. 6,000 c. Stock Rs. 9,000 d. B & D were both become insolvent Give Necessary a/cs in the books of the firm acc. to the Indian practice.
Now my question is
a. what should be the treatment of loss which is given in the question ? In how many of the partners will it be distributed?
b. Is it right to use Garner Vs Murray to solve the problem if not then what is the actual difference b/w Garner vs Murray and Indian Practice.
loss (shown in the B/S) distibuted between all the partners in the ration of 4:3:2:1
different between Garner v/s Murrey b/w Indian Practice is just on the view of any loss (reveluation loss) arise due to insolvent of any partner(s), other partner bring loss in cash & according to Garner v/s Murrey the share of loss of insolvent partner(s) bear by other partner(s) in the ratio of their capital.but in Indian Practice, no need to bring loss in cash.
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