The deed gives B a firm guarantee of minimum profit of Rs 15,000. Total profit is Rs 60,000 and B’s normal share is Rs 12,000. By how much will profit available to other partners reduce?

Correct answer: Rs 3,000

The governing concept is a guaranteed minimum profit and adjustment of the deficiency. B is entitled to receive at least Rs 15,000, but the normal profit-sharing calculation gives B only Rs 12,000. The shortfall is calculated as: guaranteed minimum − normal share = Rs 15,000 − Rs 12,000 = Rs 3,000. Because the guarantee is given by the firm, this additional Rs 3,000 must be met from the profit that would otherwise remain available for the other partners. The whole Rs 15,000 is not deducted again because Rs 12,000 is already B’s normal share. Thus the reduction is Rs 3,000, making option A correct.