According to Surplus Capital Method in Piecemeal
distribution, final deficit of each partner will be in the
ratio of..
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Answer:
Note: After paying the surplus capital to A, the remaining capital should be distributed among all the partners in their capital sharing ratio of 3:2: 1.
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According to Surplus Capital Method in Piecemeal distribution, a final deficit of each partner will be in the ratio of profit and loss.
Explanation:-
- Surplus Capital Method is also known as Highest Relative Capital Method, Quotient Method, or Excess Capital Method.
- The capitals are initially compared to the profit share ratio in this method.
- Excess capital is paid first (actual capital less capital proportionate to the profit-sharing ratio).
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