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Under fixed capital method A capital is one lakh rupees and B capital is eighty thousand rupees. A current account has debit ten thousand and B current account has credit ten thousand. What capital ratio should be considered?

Answer and explanation

Correct answer: Five to four

Under fixed capital method capital ratio is taken from capital accounts. Current account balances are regular adjustments.

Related tags

Fixed CapitalCapital RatioCurrent AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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