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Write the term / word / phrase which can substitute the following statement :Excess of actual capital over proportionate capital. |
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Answer» Surplus Capital Explanation: Excess of actual capital over proportionate capital is regarded as surplus capital. This implies that the actual capital of the partners is more than what the capital should be on a proportionate basis. It is to be transferred to the current account or it may be withdrawn by the partners as per the terms of the agreement. |
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