The correct answer is D. Balance of cash A/c.
Capital ratio is a measure of the relative contributions of the partners to the partnership. It is calculated by dividing the capital of each partner by the total capital of the partnership.
The capital of a partner is the amount of money or property that the partner has contributed to the partnership. The capital of a partnership is the total of the capital of all the partners.
The capital ratio is used to determine the profit and loss sharing ratio of the partners. It is also used to determine the voting rights of the partners.
The capital ratio is not affected by the balance of cash in the partnership account. The balance of cash in the partnership account is a fluctuating amount. It can increase or decrease depending on the business activities of the partnership.
The other options are all included in the capital of a partner. They are not affected by the balance of cash in the partnership account.
A. General reserve fund is a reserve that is created by the partnership to meet unexpected expenses or losses.
B. Balance of profit and loss is the amount of profit or loss that the partnership has made over the years.
C. Profit on realization is the profit that the partnership makes when it sells its assets.