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If the deed requires partners to keep equal capitals, withdrawal of excess capital will relate to which account?

Answer and explanation

Correct answer: Partner's capital account

The equal capital condition is fulfilled by adjusting capital accounts. Excess capital may be withdrawn or deficient capital may be introduced.

Related tags

Equal CapitalCapital AccountAdjustmentPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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