In the absence of a Provision in the partnership deed, In which ratio is the deficiency arising out of the guarantee of profit to a partner borne by the other partners.
In the absence of a Provision in the partnership deed, In which ratio is the deficiency arising out of the guarantee of profit to a partner borne by the other partners.
Anurag Pathak Changed status to publish April 9, 2023
In the absence of a partnership Deed, the deficiency arising out of guarantee of profit to a partner is borne by other partners in their old profit sharing ratio.
For example:-
There are 3 partners A, B and C sharing profits and losses in 3 : 2 : 1. The Partners C is given a guarantee to minimum profit of ₹ 12,000.
The Profit for the year is ₹ 60,000. The profit share of C is ₹ 10,000. The deficiency of ₹ 2,000 will be borne by A and B in their old profit sharing ratio that 3:2.
Anurag Pathak Changed status to publish April 4, 2023
