Give a Word / Term / Phrase Which Can Substitute the Following Statements - Book Keeping and Accountancy

One Word Answer

Give a word / term / phrase which can substitute the following statements :
Excess of proportionate at capital over actual capital.

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Solution

Deficit capital

Explanation: Excess of proportionate capital over actual capital represents deficit capital. This implies that the existing capital of the partners is less than what the capital should be on proportionate basis. The amount of deficit capital must be brought in by the old partners or it is to be transferred to their current accounts.

Concept: Retirement Or Death of a Partner - Adjustment of Capitals

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Chapter 5: Reconstitution of Partnership (Death of Partner) - Exercise [Page 140]

Q 4 Q 3 Q 5

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