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X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners?
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X , Y and Z are partners in a firm sharing profits (losses) in the rat...
Given information:
Partners: X, Y, Z
Profit sharing ratio: 3:2:1
New profit sharing ratio: 2:1:2
Investment Fluctuation Reserve: 6000
Investment: 25000
Market value of Investment: 22000
Finding the time when the balance sheet shows the given balances:
As the question does not specify the date of the balance sheet, we cannot calculate the exact time when the balance sheet shows the given balances. However, we can assume that the balance sheet is prepared at the end of an accounting period (usually a year) and calculate the balances accordingly.
Calculating the new profit sharing ratio:
The new profit sharing ratio is 2:1:2, which means that X gets 2/5, Y gets 1/5, and Z gets 2/5 of the profits.
Calculating the amounts of investment for each partner:
The total investment is 25000, and its market value is 22000. This means that the investment has decreased in value by 3000 (25000-22000). This loss needs to be distributed among the partners in the old profit sharing ratio of 3:2:1.
Partner X:
Investment value: (3/6)*25000 = 12500
Share of loss: (3/6)*3000 = 1500
New investment value: 12500-1500 = 11000
Partner Y:
Investment value: (2/6)*25000 = 8333.33 (rounded off to 8333)
Share of loss: (2/6)*3000 = 1000
New investment value: 8333-1000 = 7333
Partner Z:
Investment value: (1/6)*25000 = 4166.67 (rounded off to 4167)
Share of loss: (1/6)*3000 = 500
New investment value: 4167-500 = 3667
Distributing the Investment Fluctuation Reserve:
The Investment Fluctuation Reserve of 6000 needs to be distributed among the partners in the new profit sharing ratio of 2:1:2.
Partner X:
Share of reserve: (2/5)*6000 = 2400
Partner Y:
Share of reserve: (1/5)*6000 = 1200
Partner Z:
Share of reserve: (2/5)*6000 = 2400
Therefore, the new balances of the partners after distributing the Investment Fluctuation Reserve are:
X: Investment = 11000, Investment Fluctuation Reserve = 2400
Y: Investment = 7333, Investment Fluctuation Reserve = 1200
Z: Investment = 3667, Investment Fluctuation Reserve = 2400
Partners: X, Y, Z
Profit sharing ratio: 3:2:1
New profit sharing ratio: 2:1:2
Investment Fluctuation Reserve: 6000
Investment: 25000
Market value of Investment: 22000
Finding the time when the balance sheet shows the given balances:
As the question does not specify the date of the balance sheet, we cannot calculate the exact time when the balance sheet shows the given balances. However, we can assume that the balance sheet is prepared at the end of an accounting period (usually a year) and calculate the balances accordingly.
Calculating the new profit sharing ratio:
The new profit sharing ratio is 2:1:2, which means that X gets 2/5, Y gets 1/5, and Z gets 2/5 of the profits.
Calculating the amounts of investment for each partner:
The total investment is 25000, and its market value is 22000. This means that the investment has decreased in value by 3000 (25000-22000). This loss needs to be distributed among the partners in the old profit sharing ratio of 3:2:1.
Partner X:
Investment value: (3/6)*25000 = 12500
Share of loss: (3/6)*3000 = 1500
New investment value: 12500-1500 = 11000
Partner Y:
Investment value: (2/6)*25000 = 8333.33 (rounded off to 8333)
Share of loss: (2/6)*3000 = 1000
New investment value: 8333-1000 = 7333
Partner Z:
Investment value: (1/6)*25000 = 4166.67 (rounded off to 4167)
Share of loss: (1/6)*3000 = 500
New investment value: 4167-500 = 3667
Distributing the Investment Fluctuation Reserve:
The Investment Fluctuation Reserve of 6000 needs to be distributed among the partners in the new profit sharing ratio of 2:1:2.
Partner X:
Share of reserve: (2/5)*6000 = 2400
Partner Y:
Share of reserve: (1/5)*6000 = 1200
Partner Z:
Share of reserve: (2/5)*6000 = 2400
Therefore, the new balances of the partners after distributing the Investment Fluctuation Reserve are:
X: Investment = 11000, Investment Fluctuation Reserve = 2400
Y: Investment = 7333, Investment Fluctuation Reserve = 1200
Z: Investment = 3667, Investment Fluctuation Reserve = 2400
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X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners?
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X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners? 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 X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners?.
X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners? 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 X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners?.
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X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners?, a detailed solution for X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners? has been provided alongside types of X , Y and Z are partners in a firm sharing profits (losses) in the ratio of 3 : 2 : 1. They change their ratio into 2 : 1 : 2 for future profits. At what time their balance sheet shows the following balances. Investment Fluctuation reserve = 6000, Investment = 25000 Market value of Investment is 22000. Distribute Investment Fluctuation Reserve among partners? theory, EduRev gives you an
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