Accountancy, asked by PragyaTbia, 1 year ago

Deficiency of Insolvent partner will be suffered by solvent partners in their ________ ratio. (Fill in the blank by choosing correct option)
a) capital ratio
b) profit-sharing ratio
c) sale ratio
d) liquidity ratio

Answers

Answered by Anonymous

PROFIT SHARING RATIO

Answered by jeehelper

• Capital Ratio

Insolvent partner is the one who is unable to pay the debts due to deficiency of capital. insolvent partner eventually becomes bankrupt. Therefore, insolvent partner's current assets are used to pay the liabilities . The formula of capital ratio is Current assets : Current liabilities.

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