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Why in this sum deficiency of partner capital of C and D is debited to A and B IN their capital ratio Instead of profit sharing ratio when garner Murray rule not mentioned

Gokul Nath

CA Inter

★ 605

19-Feb-20 14:55

727

Answers (3)

If there is no agreement between the partners, Garner vs Murray rule is applied by default even if the question is silent.

CA Suraj Lakhotia

Admin

20-Feb-20 06:17

CA Suraj Lakhotia Admin

If there is no agreement between the partners, Garner vs Murray rule is applied by default even if the question is silent.

If that's the case why not cash is not brought for the loss on realisation

Thread Starter

Gokul Nath

CA Inter

★ 605

26-Feb-20 18:02

You need to bring in cash for realisation loss. (Though generally its a book entry only, but still need to show). The book might be incorrect.

CA Suraj Lakhotia

Admin

26-Feb-20 18:39