Partnership Accounts

Sayan Kr Mukherjee (student) (102 Points)

08 April 2009

I am unable to understand properly the rule of Gurner Vs. Murray regarding dissolution of partnership. Please help me out......

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PiyushAgrawal (Chartered acooutant in practice) (575 Points)
Replied 09 April 2009

Originally posted by :Sayan Kr Mukherjee
"	I am unable to understand properly the rule of Gurner Vs. Murray regarding dissolution of partnership. Please help me out......	"

what kind of problem u facing??

Sayan Kr Mukherjee (student) (102 Points)
Replied 10 April 2009

It will be very helpful for me if anyone discuss it with a good example.

M.N.GOPALAKRISHNAN (STUDENT) (22 Points)
Replied 11 April 2009

At the time of dissolution of partnership firm,

if the capital account of any partner has a debit balance and he is insolvent,

the solvent partners should bring in cash equivalent to the realisation loss debited to their capital account, in order to prove their solvency

and only then the debit balance of the insolvent partner shall be transfered to solvent partners.

ratio for such transfer shall be

ratio of their capital, if the capital accounts are fixed
ratio of the capital outstanding beforecommencement of dissolution, in the case of fluctuating capital account.