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Mention of a partner giving profit guarantee in the deed is especially useful in which situation?

Answer and explanation

Correct answer: When a partner's actual share is less than the guaranteed amount

Guarantee applies when the actual profit share is less than the guaranteed minimum. The deficiency is adjusted from the guaranteeing partner.

Related tags

Profit GuaranteeGuaranteed PartnerPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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