Question

When the amount realized from assets is not sufficient to pay fully the firm's
liabilities, such deficiency is borne​

Answer 1

Answer:

Deficiency is borne by partners of the firm

In case if any partner is insolvent then solvent partners pay the liability

Answer 2

When the amount realized from assets is not sufficient to pay fully the firm's liabilities, such deficiency is borne​ by the partners in their profit sharing ratio.

Explanation:

• In partnership enterprises, the term 'profit sharing ratio' is commonly employed. This is just the profit split amongst the partners in the business. We've talked a lot about the Profit Sharing Ratio in this context.
• The new profit-sharing ratio is the percentage in which a firm's old and new partners agree to split the firm's future profits.
• When a new partner enters a business, it is vital to settle on a new profit-sharing ratio because he or she will be entitled to share profits in the future.
• If this ratio is not agreed upon at the time of a new partner's admittance, the profit will be dispersed equally among all existing and new partners.