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Can any one explain following point with small example?
Answers (11)
Venkat the partner invested capital of 100000 , after sometime he took loan of rs 120000 from the firm ( personal) . Here debit balance - 20000 Now venkat can be asked to give cash 20000 to the firm but not more than that(i.e if any partner having debit balnce in capital like mentioned above and becomes insolvent ,then that can be recovered from other partner who are solvent and having celredot balance but not from venkat)
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Sairam ReddyBut during dissolution he may be solvent partner and Is garner vs Murray rule is applicable or not?
no , once venkat took 20000 he will not continue as a partner only the remaining solvent partners are continue as partners for the purpoise of dissolution and they will take the cash if any available with the firm after dissolution.
venkatesh sundharamoorthy
no , once venkat took 20000 he will not continue as a partner only the remaining solvent partners are continue as partners for the purpoise of dissolution and they will take the cash if any available with the firm after dissolution.
If all take loan equal to there capital then who will bear the loss on dissolution
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Sairam ReddyIf all take loan equal to there capital then who will bear the loss on dissolution
If they are solvent partners then all will bear the loss
Thread Starter
Sairam ReddyIf all take loan equal to there capital then who will bear the loss on dissolution
Only if their balance is debit then they will bring in cash first to make it dr =cr ,after if there is any loss becoz of insolvent partners ,then firm will be declared as insolvent firm
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