If A has guaranteed B in the deed and Bs deficiency is Rs 7000, from whose share will this deficiency be deducted?

Correct answer: From As profit share

A guarantee by one partner protects another partner against a stated deficiency, usually in the amount of profit or minimum share promised to that partner. If B is short by Rs 7,000 and A has guaranteed B’s amount in the deed, A must bear that shortfall according to the guarantee. The deficiency is therefore treated as a charge against A’s share, subject to the exact terms of the deed.

The amount of Rs 7,000 is not taken from B’s drawings, the firm’s sales, or bank interest. It is adjusted against the share of the partner who gave the guarantee. Hence option A, “from A’s profit share,” is correct. The guarantee does not generally mean that the firm has incurred a sales or banking expense; it is a settlement between the partners under their agreement.