Question

Write the term / word / phrase which can substitute each of the following statement :

Excess of actual capital over proportionate capital.

Answer 1

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 It is to be transferred to the current account or it may be withdrawn by the partners as per the terms of the agreement.