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If guarantee deficiency is to be borne by all non guaranteed partners in their capital ratio which ratio will be used?

Answer and explanation

Correct answer: Capital ratio

The deed specifically states capital ratio so that ratio applies. In guarantee questions the deficiency bearing ratio may differ from profit ratio.

Related tags

PartnershipAdjustmentsDeficiency RatioPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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