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AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation?
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AVM C are partners in a firm sharing profits and losses in the ratio 5...
Calculation of Revaluation:
To determine the revaluation of B's interest in the firm, the value of the machine and the goodwill needs to be adjusted.
Revalued Machine:
The machine, Bira, is valued at $480,000. This means that the value of the machine has increased by $120,000 ($480,000 - $360,000). This increase in value needs to be added to the capital account of B.
Revalued Goodwill:
The revaluation of the goodwill is not mentioned in the question. Hence, it can be assumed that the goodwill remains unchanged.
Calculation of B's Interest:
To calculate B's interest in the firm after revaluation, the capital account of B needs to be adjusted by adding the increase in value of the machine.
The capital account of B before revaluation is $200,000. Adding the increase in value of the machine ($120,000) to B's capital account gives:
$200,000 + $120,000 = $320,000
So, B's interest in the firm after revaluation is $320,000.
Calculation of C's Interest:
The ratio of profit sharing between A, B, and C is 5:3:2. Since C is retiring, his capital account needs to be calculated.
The total ratio is 5+3+2 = 10.
To calculate C's capital account, we can assume that the total capital of the firm is divided into 10 equal parts. C's share will be 2 parts out of 10.
C's capital account can be calculated as follows:
C's capital account = (Total capital of the firm / Total ratio) * C's share
= ($280,000 + $200,000) / 10 * 2
= $480,000 / 10 * 2
= $96,000
So, C's capital account before revaluation is $96,000.
Conclusion:
After taking into consideration the revaluation of the machine and the calculation of C's interest, the following can be concluded:
- The machine, Bira, is valued at $480,000 after revaluation.
- B's interest in the firm after revaluation is $320,000.
- C's interest in the firm before revaluation is $96,000.
Note: The revaluation of the goodwill is not mentioned in the question, so it can be assumed that the goodwill remains unchanged.
To determine the revaluation of B's interest in the firm, the value of the machine and the goodwill needs to be adjusted.
Revalued Machine:
The machine, Bira, is valued at $480,000. This means that the value of the machine has increased by $120,000 ($480,000 - $360,000). This increase in value needs to be added to the capital account of B.
Revalued Goodwill:
The revaluation of the goodwill is not mentioned in the question. Hence, it can be assumed that the goodwill remains unchanged.
Calculation of B's Interest:
To calculate B's interest in the firm after revaluation, the capital account of B needs to be adjusted by adding the increase in value of the machine.
The capital account of B before revaluation is $200,000. Adding the increase in value of the machine ($120,000) to B's capital account gives:
$200,000 + $120,000 = $320,000
So, B's interest in the firm after revaluation is $320,000.
Calculation of C's Interest:
The ratio of profit sharing between A, B, and C is 5:3:2. Since C is retiring, his capital account needs to be calculated.
The total ratio is 5+3+2 = 10.
To calculate C's capital account, we can assume that the total capital of the firm is divided into 10 equal parts. C's share will be 2 parts out of 10.
C's capital account can be calculated as follows:
C's capital account = (Total capital of the firm / Total ratio) * C's share
= ($280,000 + $200,000) / 10 * 2
= $480,000 / 10 * 2
= $96,000
So, C's capital account before revaluation is $96,000.
Conclusion:
After taking into consideration the revaluation of the machine and the calculation of C's interest, the following can be concluded:
- The machine, Bira, is valued at $480,000 after revaluation.
- B's interest in the firm after revaluation is $320,000.
- C's interest in the firm before revaluation is $96,000.
Note: The revaluation of the goodwill is not mentioned in the question, so it can be assumed that the goodwill remains unchanged.
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AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation?
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AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation?.
AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation?.
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AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation?, a detailed solution for AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation? has been provided alongside types of AVM C are partners in a firm sharing profits and losses in the ratio 5 is to 3 is to 2 years balance sheet was as follows capital account a 280000 b 200000 120000 current liabilities 184000 Goodwill 80000 machinery 360000 debtors 140000 stock 180000 cash 24000 C retired on 14 2001 it was agreed that machine Re Bira valued at 480000 b c interest in the form is valued at 188000 after taking into consideration revaluation? theory, EduRev gives you an
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