Adil, Bhavya, and Chris are partners sharing profits in the ratio of 5:4:1. Chris is given a guarantee that his share of profit in any year will not be less than ₹ 5,000. The deficiency in the profit share of Chris will be borne by Bhavya. The Journal entry to record for deficiency met by Bhavya is given below:

Bhavya’s Capital A/c Dr. ₹ 1,000

To Chris’s Capital A/c ₹ 1,000

(Deficiency met be Bhavya)

Profit earned during the year was

a) ₹ 30,000

b) ₹ 35,000

d) ₹ 40,000

d) ₹ 50,000

Anurag Pathak Changed status to publish April 9, 2023
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