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

Answer and explanation

Correct answer: Deficient capital is brought by the partner

When capital is less than target capital the partner has to bring the deficiency. This is the normal way to correct capital ratio.

Related tags

Capital DeficiencyCapital AdjustmentConceptCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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