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The deed requires capitals in the ratio three to two. A capital is sixty thousand and B capital is fifty thousand. What does this indicate for adjustment?

Answer and explanation

Correct answer: B capital is more than required by ratio

On A capital of sixty thousand B required capital is forty thousand. B has fifty thousand so excess is ten thousand.

Related tags

Capital RatioCapital AdjustmentNumericalPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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