Multiple choice

A partnership firm of X, Y and Z has been adjudged insolvent and its loan account is showing a debit balance of Rs. 3 lac. Its partner Y is having a saving bank account in which there is balance of Rs. 1.50 lac.

  1. The balance in partner’s account cannot be utilised for payment of dues of an insolvent firm.

  2. The balance in partner’s personal account cannot be utilised as that balance belongs to official assignee.

  3. The balance in partner’s account can be utilised by exercising the right of set off sue to his joint and several liabilities.

  4. The balance can be utilised before it is objected to by the partner.

  5. Any of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The balance in partner’s account can be utilised by exercising the right of set off sue to his joint and several liabilities.

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