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If capitals are to be adjusted in profit ratio and no partner is allowed to withdraw money how can excess capital position be handled?

Answer and explanation

Correct answer: Partners with deficient capital bring additional capital

When withdrawal is not allowed highest capital may be used as base and other partners bring deficiency. Read the condition in exams.

Related tags

Capital AdjustmentNo WithdrawalAdditional CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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