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A and B share profits in (3:2). B is guaranteed (₹50000). Total profit is (₹95000). Why is it wrong to say deficiency is borne by both A and B in profit ratio?

Answer and explanation

Correct answer: Because the guaranteed partner does not bear his own deficiency

Deficiency of a guarantee is not recovered from the guaranteed partner. Usually other or specified partners bear it.

Related tags

PartnershipAdjustmentsGuarantee LogicPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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