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Describe the legal provisions pertaining to loss of dissolution of a partnership firm. |
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Answer» According to Indian Partnership Act, the loss arised including capital deficit at the time of dissolution is executed in the following manner: (a) First of all it will be written off from the profit of the firm. (b) If profit is not sufficient, then it will be paid from the capital of the partners. (c) If capital is not sufficient, then all partners would distribute this loss in their profit-loss sharing ratio and pay from their personal assets as per requirement. |
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