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Question
Select the most appropriate answer from the alternative given below and rewrite the sentence.
Excess of proportionate capital over actual capital represents _________________.
Options
surplus capital
deficit capital
sacrifice
equal capital
Solution
Excess of proportionate capital over actual capital represents deficit capital.
Explanation: Excess of proportionate capital over actual capital represents deficit capital. This deficit capital must be brought in by the old partners or it is to be transferred to their current accounts.
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RELATED QUESTIONS
If any asset is taken over by partner from the firm ______ account will be debited.
State 'True' or 'False'
A new partner is admitted in the firm for getting additional capital and skill.
Objective type questions.
Select appropriate alternatives from those given below and rewrite the sentences.
Excess of proportionate capital over actual capital represents.......................
