Question

Write the word/term/phrase, which can substitute each of the following statements.

"Debit balance of an insolvent Partner's Capital Account".

विकल्प

• capital deficiency

• Surplus capital

• Either capital deficiency or Surplus capital

• None of the above

Answer 1

capital deficiency

Explanation:

Capital shortfall is the debit balance of an insolvent partner's capital account. This shortfall will be shared among all solvent partners in their profit-sharing ratio.