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Profit is ₹50000. Interest on capital is ₹32000 and partner salary is ₹28000. The deed gives no priority. How will total claims be reduced?

Answer and explanation

Correct answer: Reduced in the ratio 32000:28000

When profit is insufficient and no priority is given claims are reduced in the ratio due. Total payment cannot exceed profit ₹50000.

Related tags

PartnershipInsufficient ProfitAppropriationAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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