Dissolution - Partnership

Accountancy

Only if mentioned in the question to follow Garner vs Murray rule, should we take the capital ratio after adjusting reserves ? In this question haven't mentioned as Garner vs Murray and for capital ratio they have taken without considering reserves.

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Dhivyaa Latha

CA Inter

★ 4K+

11-May-23 12:36

609

Answers (4)

Best Answer

Garner vs Murray rule is used if nothing is mentioned in the question. You need to adjust reserves if fluctuating capital is maintained.

CA Suraj Lakhotia

Admin

11-May-23 14:25

CA Suraj Lakhotia Admin

Garner vs Murray rule is used if nothing is mentioned in the question. You need to adjust reserves if fluctuating capital is maintained.

The attached question is April 2023 MTP, Have they solved it wrongly without adjusting reserves ?

DHIVYAA DAMODARAN

CA Inter

★ 60

11-May-23 14:28

It should be adjusted.

CA Suraj Lakhotia

Admin

11-May-23 14:29

CA Suraj Lakhotia Admin

It should be adjusted.

Thank you so much Sir.

DHIVYAA DAMODARAN

CA Inter

★ 60

11-May-23 14:30