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Class 12 Accountancy Partnership Accounts - Basic Concepts Partnership DeedMedium

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If the deed gives profit-loss ratio as 5:3 but capital ratio as 2:1, in what ratio will loss be shared?

Answer and explanation

Correct answer: 5:3

Loss will be shared in the profit-loss ratio stated in the deed. Capital ratio is used for a different purpose.

Related tags

Loss Sharing Profit Loss Ratio Capital Ratio Partnership Deed Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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