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Class 12 Accountancy Partnership Accounts - Basic Concepts AdjustmentsExpert

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The partnership deed guarantees A a minimum profit of (₹40000). A's actual share is (₹33000) and B will bear the deficiency. Which adjustment is correct?

Answer and explanation

Correct answer: Debit B (₹7000) and credit A (₹7000)

The deficiency is (40000-33000=₹7000). The partner bearing it is debited and the guaranteed partner is credited.

Related tags

Partnership Adjustments Profit Guarantee Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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