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Question
Write the term / word / phrase which can substitute the following statement :
Excess of actual capital over proportionate capital.
One Word/Term Answer
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Solution
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 It is to be transferred to the current account or it may be withdrawn by the partners as per the terms of the agreement.
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