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The deed gives a guaranteed profit to one partner. Who will bear the deficiency if the payer is not specified in the deed?

Answer and explanation

Correct answer: Other partners in profit sharing ratio

The deficiency is generally borne by other partners in their profit ratio when no special payer is stated. If the payer is named follow that clause.

Related tags

Guaranteed ProfitDeficiencyPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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