In absence of an agreement, loss arising out of a partner becoming insolvent shall be borne by solvent partner in

According to Garner Vs. Murray in absence of any contract to contrary deficiency arising on account of a partner becoming insolvent shall be borne by solvent partners in their

A

Profit and loss ratio

B

Capital ratio obtained after dissolution of firm

C

Capital ratio before the dissolution of firm

D

Equal ratio

Which of the following are the consequences in case of insolvency of partner?
1. The partner adjudicated as insolvent ceases to be a partner.
2. He ceases on the date on which the order of adjudication is made.
3. The firm is dissolved on the date of the order.
4. The estate of the insolvent partner is liable for any act of the firm after the date of the order of adjudication.
5. The firm can be held liable for any acts of the insolvent partners after the date of the order of adjudication.
Select the correct answer:

A

Only 5

B

Both 4 and 5

C

3, 4 and 5

D

1, 2 and 3

As per the decision in the Garner vs Murray case, when the partner's capital accounts are fixed, any loss arising due to the capital deficiency in the insolvent partner's capital account is to be borne by solvent partners in the ratio of . . . . . . . .

A

profit sharing ratio

B

last agreed capital ratio

C

sacrificing ratio

D

gaining ratio

X' and 'Y' jointly take a loan, from 'Z' with promise to repay the loan amount with interest within two years. Soon after taking the loan 'X' is declared as an insolvent and remains insolvent till the date of repayment of loan. 'Y' also fails to repay the loan. 'X' on account of his status as insolvent enjoys immunity from legal proceedings. In these circumstances:

A

Z' can in law institute a suit for recovery of, only 50% of the outstanding from 'Y'

B

Z' is entitled in law to sue 'Y' alone for recovery of the entire outstanding amount

C

Z' is not entitled to sue 'Y' also for recovery of loan amount till the order of insolvency of 'X' ceases to operate

D

Z' is entitled in law to sue 'Y' for 50% of the principal amount due and the entire interest outstanding

Which of the following are correct regarding rights of partners?
1. A partner has the right to allow the admission of a new partner.
2. Every partner has a right to take part in the management of business.
3. Every partner has a joint ownership of partnership property.
4. Every partner has a right to share the profit not the losses with other partners.
5. Every partner has a right to inspect the books of account and have a copy of the same.
6. In case of emergency, a partner has a right to act as a man of prudence.
Select the correct answer:

A

1, 2, 3, 4

B

2, 3, 4, 6

C

3, 4, 5, 6

D

2, 3, 5, 6

When capitals of partners are fluctuating, then in the case of dissolution of the firm, the deficiency of the insolvent partner's capital is borne by the solvent partners according to Garner Vs. Murrary decision:

A

In their profit-sharing ratio

B

In the ratio of their capitals as they stood before the commencement of dissolution

C

In the ratio of their capitals arrived at after the adjustment of accumulated profit & loss on realisation but before profit and loss on realisation

D

In the ratio of their capital arrived at after the adjustment of accumulated profit & loss and profit & loss on realisation

According to Garner Vs Murray rule, loss on account of a partner becoming insolvent should be distributed to remaining partners in

A

Capital ratio

B

Profit and loss ratio

C

Average ratio

D

None of the above

Under Garner vs Murray rule, in the event of dissolution of a partnership firm, solvent partner will have to share the deficiency of insolvent partner in

A

Profit Sharing Ratio

B

Adjusted Capital Ratio

C

Sacrificing Ratio

D

None of these

The vapor pressure of the solvent decreased by 10 mm Hg, when a non-volatile solute was added to the solvent. The mole fraction of the solute in the solution is 0.2. What should be the mole fraction of the solvent, if the decrease in vapor pressure of the solvent is required to be 20 mm Hg.?

A

0.2

B

0.1

C

0.4

D

0.6

Loss arising due to insolvency of a partner is to be borne by other partners:

A

in equal proportion

B

in the ratio of their capital

C

in the profit sharing ratio

D

none of the above

In absence of an agreement, loss arising out of a partner becoming insolvent shall be borne by solvent partner in

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