In absence of an agreement, loss arising out of a partner becoming insolvent shall be borne by solvent partner in

Solution (By Examveda Team)

The question asks: "In absence of an agreement, loss arising out of a partner becoming insolvent shall be borne by solvent partner in..."

Insolvent means a partner can't pay their debts (they're broke!).
Solvent partners are the partners who *can* pay their debts.
Absence of an agreement this refers to a situation where the partnership deed does not specify how losses from an insolvent partner should be handled.

Now, think about what happens if there's no partnership agreement that specifies how to handle this situation.
The general rule in partnership accounting (when there's no specific agreement) is that profits and losses are shared according to the profit-sharing ratio.

Option A: Equal ratio - This might seem fair, but it's not the default rule.
Option B: Their capital ratio - Capital ratio is based on how much money each partner invested initially.
Option C: Their profit-sharing ratio - This is the correct answer! In the absence of a specific agreement, losses are shared in the agreed-upon profit-sharing ratio.
Option D: 3 : 2 : 1 ratio - This is just a random ratio and has no basis unless specified in an agreement.

Therefore, the correct answer is C: Their profit-sharing ratio. The solvent partners will bear the loss from the insolvent partner in the ratio they share profits.