In the case of loss caused to the firm by fraud or misrepresentation made by a partner, the same shall be borne by ______________.

All the partners in their capital ratio

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All the partners in their profit sharing ratio

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Defaulting partner only

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Managing partner only

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Solution

The correct option is B Defaulting partner only
In the case of loss caused by fraud or misrepresentation made by a partner the same shall be borne by defaulting partner only.

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