Home › CA Foundation › accountancy › partnership › 'Guarantee of profit to a partner' means the par…
'Guarantee of profit to a partner' means the partner gets
Ainterest at 12%
Bno share of loss
Cdouble the normal share
Da minimum assured amount regardless of actual share
Answer & Solution
Correct answer: D. a minimum assured amount regardless of actual share
A guarantee ensures the partner receives at least the assured minimum; any shortfall is borne by the guaranteeing partner(s).
Related questions
Collectively, partners carrying on a business are called aOpening capital ₹1,00,000; additional ₹50,000 introduced after 6 months; interest at 10% pRent paid to a partner for using their premises isP and Q share 1:1. P is guaranteed ₹25,000 minimum by Q. Profit ₹40,000. After guarantee, The document containing the terms of partnership is theIf a partner's capital account shows a debit balance, it usually means the partner hasNet profit ₹90,000; A's salary ₹12,000; interest on capitals ₹18,000 total. Profit availabInterest on capital is calculated on the