A is guaranteed a minimum profit of Rs 25,000, while A’s normal profit share is Rs 21,000. What deficiency adjustment is required?

Correct answer: Rs 4,000

The governing concept is a minimum-profit guarantee. A must receive at least Rs 25,000, but the normal profit allocation gives A only Rs 21,000. The deficiency is calculated as guaranteed minimum profit minus normal share: Rs 25,000 − Rs 21,000 = Rs 4,000. This amount must be borne by the partner or partners who gave the guarantee, according to the agreed terms. After the adjustment, A receives Rs 21,000 + Rs 4,000 = Rs 25,000. Therefore option A is correct. Rs 25,000 is the guaranteed total, Rs 21,000 is the original share, and neither is the deficiency. Option D incorrectly assumes that no adjustment is needed.