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If a partners capital is more than required ratio and firm cannot return cash how may the excess be shown?

Answer and explanation

Correct answer: As credit balance of his current account

If excess capital is not returned it remains payable to partner. It may be shown as credit in his current account.

Related tags

Excess CapitalCurrent AccountNo CashCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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