If A and C equally bear B guarantee deficiency what happens in A and C accounts?

Correct answer: Both accounts are debited with their shares

The direct answer is option A: both A’s and C’s accounts are debited with their respective shares of the deficiency. Suppose B is guaranteed an amount but the profit credited to B is lower. The difference is called the deficiency. If A and C agree to bear that deficiency, the burden reduces the profit otherwise available to them. A reduction in a partner’s profit is recorded by debiting that partner’s account for the agreed amount. Thus A’s account is debited for A’s share and C’s account is debited for C’s share; B receives the deficiency through the appropriate adjustment. Option A is correct. Option B, crediting both A and C, would increase their profits instead of charging them for the deficiency. Option C, debiting only B, is wrong because B is the guaranteed partner receiving protection, while A and C are the partners bearing the shortfall. Option D, no entry, is wrong because an agreed deficiency transfer must be recorded. The exact amounts depend on the agreed burden ratio, but the debit effect on the partners bearing the deficiency is certain. Memory cue: “The partner who bears a shortfall is debited.”