Question

A Solvent partner having debit balance to his Capital Account does not share the deficiency of Insolvent Partner's Capital Account. (State True or False)

Answer 1

HEY...

I THINK

FALSE IS THE ANSWER

Answer 2

Answer:

True

Explanation:

A Solvent partner having debit balance to his Capital Account does not share the deficiency of Insolvent Partner's Capital Account. - True

Capital deficiency is called the debit equilibrium of the capital account of an insolvent partner that can not be satisfied owing to absence of excess balance. All solvent partners shall bear this deficiency in their profit-sharing ratio.