Excess of proportionate capital over actual capital represents ________.

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

Answer 1

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.