A guaranteed a minimum annual fee of Rs. 6,00,000 for the firm, but during the year he actually earned Rs. 3,20,000.
Deficiency in A's annual fee:
Guaranteed annual fee = Rs. 6,00,000
Actual fee earned = Rs. 3,20,000
Deficiency = Rs. 6,00,000 - Rs. 3,20,000 = Rs. 2,80,000
This deficiency amount will be debited to A's capital account as he failed to meet his guaranteed commitment to the firm.
Correct Option: 1 (Rs. 2,80,000)