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If capital accounts are to be adjusted in profit ratio and bringing additional capital is not allowed how may the deficiency of a partner be adjusted?

Answer and explanation

Correct answer: By returning capital to partners having excess capital

When additional capital is not brought total capital may be reduced to the ratio. Partners with excess capital withdraw money.

Related tags

Capital AdjustmentDeficiencyWithdrawal MethodCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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