In case of winding up of firm if the asset of the firm are not sufficient to pay the partner capital, the deficiency in capital _______________________.

will be made good by the Registrar of firms

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will be borne by the partners in their profit sharing ratio

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will be borne by the partners in their capital ratio

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will be borne by the partners in the ratio of their net worth

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Solution

The correct option is B will be borne by the partners in their profit sharing ratio
Option B is right answer. Winding up a partnership refers to procedures that are taken to distribute or liquidate any remaining partnership property and assets that is remaining after a dissolution of a partnership business. Only partners that are still remaining with the partnership have the right to partnership assets during the winding up process.
The procedure of winding up a partnership involves:
Collecting remaining business assets
Settling any remaining debts owed to non-partner creditors
Distributing the remaining assets to the remaining partners.

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