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Answer: The capital deficiency of an insolvent partner is borne by the solvent partners in the ratio of their last agreed capitals (Garner v. Murray rule).

Under the rule in Garner v. Murray, the solvent partners share the deficiency in the ratio of their capitals standing before dissolution, and not in their profit sharing ratio.

Doubtly AI · 29 Oct 2026 AI-generated · not yet verified Report
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