Question

write short notes on:
Surplus Capital Method​

Answer 1

Answer:

SURPLUS CAPITAL METHOD : Under this method, cash is first paid to a partner who has surplus capital as compared to other partner's capital on the basis of their profit sharing ratio. It must, in the first instance, be found out as to who has the least amount of capital on the basis of his share in the profit.

Answer 2

Answer:

surplus capital method