In the case of guarantee of profit,the sequence of Steps to be followed are:

(A) divide the profit in the given ratio.

(B) prepare profit and loss appropriation account as usual.

(C) deduct the deficiency from guaranteeing partner and add the same to guaranteed partner.

(D) find the deficiency.

Choose the correct answer from the options given below:

(B), (A), (D), (C)

The correct answer is option 3- (B), (A), (D), (C).

In the case of guarantee of profit,the sequence of Steps to be followed are:

(B) prepare profit and loss appropriation account as usual- Start by preparing the Profit and Loss Appropriation Account to determine the total divisible profit among partners.

(A) divide the profit in the given ratio- Divide the divisible profit among the partners in the agreed profit-sharing ratio.

(D) find the deficiency- Compare the actual share received by the guaranteed partner with the guaranteed amount. If the actual share is less, calculate the shortfall (deficiency)

(C) deduct the deficiency from guaranteeing partner and add the same to guaranteed partner- Adjust the deficiency by deducting it from the share of the partner(s) who gave the guarantee and credit it to the guaranteed partner.