What change does profit makes to capital?

Profit gets reduced from capital

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Profit gets added to the capital

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Profit has no change to capital

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All of these

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Solution

The correct option is B
Profit gets added to the capital

Profit gets added to the capital of the partners at the end of the financial year.

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Similar questions

If opening capital is less than closing capital, it shows:

(a) Loss

(b) Profit

(d) Profit, if no additional capital is introduced.

The revaluation profit is ____ to the capital accounts of all partners.

Does capital expenditure affect profit?

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