Question

Realisation loss is not transferred to insolvent partner's Capital Account. (State True or False)

Answer 1

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Your Answer:-

TRUE


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Answer 2

The statement realisation loss is not transferred to an insolvent partner's Capital Account is False.

• Realisation loss is always transferred to the insolvent partner's Capital Account
• Loss of realization is transferred to all the capital account of the partners, including the insolvent partner. The total amount of capital deficiency is then determined and shared in their profit-sharing ratio by the other solvent partners.