Question

Maximum loss method is also called as what

Answer 1

Answer:

• Maximum loss method. it is an alternative method of piecemeal distribution. After payment of all the outside liabilities and partners loan under these method. maximum possible loss an every realization is calculated.✨

Answer 2

Answer:

Maximum Loss Method

Explanation:

It is an alternative method of piecemeal distribution. After payment of all the outside liabilities and partners' loan, under this method, maximum possible loss an every realization is calculated. In other words, the amount available for distribution among partners is compared with the total amount of capital payable to the partners and the maximum loss is ascertained on the assumption that in future assets will not realize any amount.

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