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If As capital is Rs 80000 and Bs capital is Rs 120000 and profit is to be shared equally in what ratio will profit be credited to their accounts?

Answer and explanation

Correct answer: One to one

The basis of profit distribution is profit sharing ratio. Even with unequal capitals profit is shared equally if the deed says so.

Related tags

Profit ShareUnequal CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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