Gar, Mur and Wil were partners, in a firm, sharing profits and losses equally. Their capitals were not equal. There was no partnership deed. The firm dissolved on 30th June 2020. The position was as follows, after dissolution:

 

Balance Sheet as of June 30, 2020

Liabilities	$	Assets	$
Gar capital a/c Mur capital a/c	2500 314	Cash Wil capital Loss on realisation	1916 263 635
	2814		2814

 

Wil became insolvent and could not pay anything against the capital deficiency.

Explain the decision that may be taken due to Wil’s insolvency. Show workings to support your response.  

Answer rating: 100% (QA)

In this scenario decision should be taken on the light of Garner vs Murray case law Because the law ... View the full answer