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If the deed requires partner As capital account to maintain minimum balance of Rs 25000, what does it control?

Answer and explanation

Correct answer: Excess withdrawals and capital reduction

Minimum capital condition limits partners withdrawals. It helps maintain financial stability of the firm.

Related tags

Minimum CapitalDrawings ControlFinancial StabilityPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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