1.

state the basic presumption in maximum loss method and proportionate capital method of piecemeal distribution among the partners​

Answer»

Answer:

If a partner's SHARE of the loss is more than the CAPITAL, he should be TREATED as “INSOLVENT” and, in accordance with Garner vs. Murray, the loss should be transferred to the other partners in the ratio of capitals just before dissolution.



Discussion

No Comment Found

Related InterviewSolutions