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If the deed guarantees minimum profit of Rs 40000 to A and actual share is Rs 32000, what is the deficiency called?

Answer and explanation

Correct answer: Deficiency under guarantee

The difference between guaranteed minimum and actual share is deficiency. It is borne by the guarantor as per deed.

Related tags

Minimum GuaranteeDeficiencyProfit SharePartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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