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A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?
- a)Rs. 2,50,000 credited to all the partners in old ratio
- b)Rs 2,00,000 credited to all the partners in old ratio
- c)Distribute JLP Reserve Account in old profit sharing ratio
- d)‘b’ and ‘c’
Correct answer is option 'D'. Can you explain this answer?
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A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2...
The treatment in the partnership will depend on the terms and conditions agreed upon by the partners. However, based on the given information, here is a possible treatment:
1. Death of B: Upon the death of B, the partnership agreement states that A and C will share profits equally. This means that the profit sharing ratio changes from 2:2:1 to 1:1:0 between A, B, and C.
2. Joint Life Policy: The partners had taken a Joint Life Policy of Rs. 2,50,000 with a surrender value of Rs. 50,000. The treatment of this policy will depend on the agreement between the partners and the terms of the policy.
a. If the policy is surrendered: If the partners decide to surrender the policy, they will receive a surrender value of Rs. 50,000. This amount can be divided among the partners based on their profit sharing ratio.
b. If the policy is continued: If the partners decide to continue the policy, they can either keep the same policy with the new profit sharing ratio of 1:1:0 or make changes to the policy based on their new agreement. The premiums for the policy will be paid by the remaining partners, A and C, in the new profit sharing ratio.
It is important for the partners to consult with each other, their insurance provider, and possibly their legal advisor to ensure that the treatment of the policy aligns with their partnership agreement and the applicable laws and regulations.
1. Death of B: Upon the death of B, the partnership agreement states that A and C will share profits equally. This means that the profit sharing ratio changes from 2:2:1 to 1:1:0 between A, B, and C.
2. Joint Life Policy: The partners had taken a Joint Life Policy of Rs. 2,50,000 with a surrender value of Rs. 50,000. The treatment of this policy will depend on the agreement between the partners and the terms of the policy.
a. If the policy is surrendered: If the partners decide to surrender the policy, they will receive a surrender value of Rs. 50,000. This amount can be divided among the partners based on their profit sharing ratio.
b. If the policy is continued: If the partners decide to continue the policy, they can either keep the same policy with the new profit sharing ratio of 1:1:0 or make changes to the policy based on their new agreement. The premiums for the policy will be paid by the remaining partners, A and C, in the new profit sharing ratio.
It is important for the partners to consult with each other, their insurance provider, and possibly their legal advisor to ensure that the treatment of the policy aligns with their partnership agreement and the applicable laws and regulations.
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A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer?
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A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer?.
A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer?.
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A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, A and C decides to share profits equally. They had taken a Joint Life Policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at the surrender along with the reserve?a)Rs. 2,50,000 credited to all the partners in old ratiob)Rs 2,00,000 credited to all the partners in old ratioc)Distribute JLP Reserve Account in old profit sharing ratiod)‘b’ and ‘c’Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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