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A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.?
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A and b are partners in a firm sharing profit and losses in ratio of 4...
Introduction
The case involves A and B, partners in a firm sharing profits and losses in a ratio of 4:3. As of March 31, 2016, their balance sheet requires some adjustments due to new capital contributions, revaluation of assets, and goodwill.
Capital Contributions
- A and B will bring in capital as follows:
- A will contribute ₹20,000 for capital.
- B will contribute ₹20,000 for capital and ₹8,400 for goodwill.
Revaluation of Assets
- The following assets will be revalued:
- Machinery will be revalued to ₹25,000.
- Stock will be revalued to ₹28,000.
Market Value of Investments
- The market value of investments as of the balance sheet date is ₹15,000.
Implications for the Firm
- The capital contributions will enhance the firm's financial stability, providing additional resources for operations.
- Revaluation of machinery and stock will reflect a more accurate financial position, potentially increasing the asset base.
- The goodwill contribution by B signifies an acknowledgment of the firm's existing value and will be recognized in the financial records.
Conclusion
This adjustment process is crucial for the firm to present an accurate picture of its financial health. Proper accounting for capital contributions, asset revaluations, and goodwill will ensure that profits and losses are shared fairly between partners, in line with their agreed ratios.
The case involves A and B, partners in a firm sharing profits and losses in a ratio of 4:3. As of March 31, 2016, their balance sheet requires some adjustments due to new capital contributions, revaluation of assets, and goodwill.
Capital Contributions
- A and B will bring in capital as follows:
- A will contribute ₹20,000 for capital.
- B will contribute ₹20,000 for capital and ₹8,400 for goodwill.
Revaluation of Assets
- The following assets will be revalued:
- Machinery will be revalued to ₹25,000.
- Stock will be revalued to ₹28,000.
Market Value of Investments
- The market value of investments as of the balance sheet date is ₹15,000.
Implications for the Firm
- The capital contributions will enhance the firm's financial stability, providing additional resources for operations.
- Revaluation of machinery and stock will reflect a more accurate financial position, potentially increasing the asset base.
- The goodwill contribution by B signifies an acknowledgment of the firm's existing value and will be recognized in the financial records.
Conclusion
This adjustment process is crucial for the firm to present an accurate picture of its financial health. Proper accounting for capital contributions, asset revaluations, and goodwill will ensure that profits and losses are shared fairly between partners, in line with their agreed ratios.
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A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.?
Question Description
A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.?.
A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.?.
Solutions for A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.? in English & in Hindi are available as part of our courses for Commerce.
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A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.?, a detailed solution for A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.? has been provided alongside types of A and b are partners in a firm sharing profit and losses in ratio of 4:3.their balance sheet as on 31st march,2016 stood as under: she will get to open 7th share in the he will bring rupees 20000 for capital andhe will bring rupees 20000 for capital and 8400 for Goodwill both the amount will remain with the firm.3. machinery and stock will be revalued at 25000 and 28000 respectively. 4.the market value of investment on the date of balance sheet was 15000.? theory, EduRev gives you an
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