What is meant by quarantee of …

 Guarantee A partner may be admitted into the firm with a guarantee of minimum profit, which means that if his share of profit is less than that of guaranteed profit, then he would be paid the guaranteed share of profit.
The deficiency (difference between guaranteed profit and actual profit) is borne by partner or partners who have guaranteed the profit in agreed ratio.
Different conditions regarding guarantee of profit are:
(i) Guarantee by the firm to a partner.
(ii) Guarantee by one partner to another partner.
(iii) Guarantee given by the partner to the firm.
(iv) Simultaneous guarantee by the firm to the partner and by the partner to the firm. Steps Involved in the Distribution of Profits under Guarantee Arrangement
Step 1 Calculate the actual share of profit/loss of guaranteed partner.
Step 2 Calculate the guaranteed amount.
Step 3 Calculate the amount of deficiency
Deficiency = Guaranteed Amount – Actual Share of Profit
Step 4 Distribute the deficiency among the guaranteeing partners in their guaranteeing ratio.
Step 5 Distribute the actual profits/losses among all the partners in their profit sharing ratio as if there is no guarantee arrangement.
Step 6 Recover share of deficiency (as per step 3) from the guaranteeing partners and give credit for the same to guaranteed partner.