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If adjusted capital is more than required ratio capital what is generally done in capital adjustment?

Answer and explanation

Correct answer: Excess capital is returned to the partner

When actual capital is more than target capital the excess is adjusted by withdrawal or repayment. If deficient capital is brought in.

Related tags

Capital AdjustmentExcess CapitalConceptCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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