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The deed requires partners capitals to be maintained in a fixed ratio. If the ratio is disturbed what is the usual adjustment?

Answer and explanation

Correct answer: Withdraw excess capital or bring deficient capital

To maintain fixed capital ratio excess or deficient capital is adjusted. In exams compare target capital with actual capital.

Related tags

Capital RatioCapital AdjustmentPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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