Partnership Accounts

what kind of problem u facing??
 

It will be very helpful for me if anyone discuss it with a good example.

At the time of dissolution of partnership firm,

if the capital account of any partner has a debit balance and he is insolvent,

the solvent partners should bring in cash equivalent to the realisation loss debited to their capital account, in order  to prove their solvency

and only then the debit balance of the insolvent partner shall be transfered to solvent partners.

ratio for such transfer shall be

• ratio of their capital, if the capital accounts are fixed
• ratio of the capital outstanding beforecommencement of dissolution, in the case of fluctuating capital account.