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The decision in Garner v/s Murray requires that
- a)All partners should bring in cash equal to their respective shares of the loss on realization.
- b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.
- c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.
- d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.
Correct answer is option 'B,D'. Can you explain this answer?
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The decision in Garner v/s Murray requires thata)All partners should b...
Garner v/s Murray Decision:
Background:
Garner v/s Murray is a legal case that established the rules regarding the distribution of losses in a partnership when a partner becomes insolvent.
Decision:
The decision in Garner v/s Murray requires that:
1. Solvent partners should bring in cash equal to their respective shares of the loss on realization:
- This means that the partners who are still financially capable should contribute funds to cover the losses incurred by the insolvent partner.
- The amount of cash brought in by each solvent partner should be in proportion to their share in the partnership.
2. Solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals:
- The loss resulting from the insolvency of a partner should be distributed among the solvent partners based on their last agreed capitals.
- The last agreed capital refers to the capital contributed by each partner at the time of their admission into the partnership or as mutually agreed upon.
Summary:
In summary, the Garner v/s Murray decision requires that the solvent partners bear the loss arising from the insolvency of a partner. They are required to bring in cash equal to their respective shares of the loss on realization and bear the loss in the ratio of their last agreed capitals. This decision ensures a fair distribution of losses and protects the financial interests of all partners involved in the partnership.
Background:
Garner v/s Murray is a legal case that established the rules regarding the distribution of losses in a partnership when a partner becomes insolvent.
Decision:
The decision in Garner v/s Murray requires that:
1. Solvent partners should bring in cash equal to their respective shares of the loss on realization:
- This means that the partners who are still financially capable should contribute funds to cover the losses incurred by the insolvent partner.
- The amount of cash brought in by each solvent partner should be in proportion to their share in the partnership.
2. Solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals:
- The loss resulting from the insolvency of a partner should be distributed among the solvent partners based on their last agreed capitals.
- The last agreed capital refers to the capital contributed by each partner at the time of their admission into the partnership or as mutually agreed upon.
Summary:
In summary, the Garner v/s Murray decision requires that the solvent partners bear the loss arising from the insolvency of a partner. They are required to bring in cash equal to their respective shares of the loss on realization and bear the loss in the ratio of their last agreed capitals. This decision ensures a fair distribution of losses and protects the financial interests of all partners involved in the partnership.
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The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer?
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The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer?.
The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer?.
Solutions for The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer?, a detailed solution for The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer? has been provided alongside types of The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The decision in Garner v/s Murray requires thata)All partners should bring in cash equal to their respective shares of the loss on realization.b)The solvent partners should bring in cash equal to their respective shares of the loss on realization.c)The solvent partners should bear the loss arising due to insolvency of a partner in their profit sharing ratio.d)The solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals.Correct answer is option 'B,D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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