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The deed provides salary and commission to partners. If the remaining amount becomes negative after these appropriations in what ratio will the final loss be shared?

Answer and explanation

Correct answer: In profit sharing ratio

The loss left after appropriations is shared in the profit sharing ratio. The deed profit ratio remains the final basis.

Related tags

Profit Loss AppropriationLoss SharingDeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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