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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 value?
- a)Rs. 50,000 credited to all the partners in old ratio
- b)Rs. 2,50,000 credited to all the partners in old ratio
- c)Rs 2,00,000 credited to all the partners in old ratio
- d)No treatment is required
Correct answer is option 'C'. 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...
Ship's books on death of B?
The first step is to calculate the surrender value of the policy after the death of B. Since the policy is a joint life policy, it will continue until the death of the last surviving partner. Therefore, the policy has a surrender value of Rs. 50,000 at the time of B's death.
Next, the total amount received from the policy needs to be calculated. The policy has a sum assured of Rs. 2,50,000, and since it was a joint life policy, the full sum assured is payable on the death of the last surviving partner. Since B is the second partner to die, only a part of the sum assured is payable. The amount payable is calculated as follows:
B's share of the sum assured = 2/5 x 2,50,000 = Rs. 1,00,000
The total amount received from the policy is the sum of the surrender value and the amount payable, which is:
Total amount received = Rs. 50,000 + Rs. 1,00,000 = Rs. 1,50,000
The profit on the policy is calculated as the difference between the total amount received and the premium paid. Since the premium paid is not given, it cannot be calculated. However, since the partners had taken the policy for the purpose of sharing profits, it can be assumed that the premium paid is equal to the total amount received. Therefore, the profit on the policy is:
Profit on policy = Rs. 1,50,000 - Rs. 1,50,000 = Rs. 0
Since there is no profit on the policy, there is no need to make any adjustment in the partnership's books on the death of B. The amount received from the policy can be distributed among the partners as follows:
A's share = Rs. 1,50,000/2 = Rs. 75,000
C's share = Rs. 1,50,000/2 = Rs. 75,000
Therefore, A and C will each receive Rs. 75,000 from the policy, and there will be no entry in the partnership's books.
The first step is to calculate the surrender value of the policy after the death of B. Since the policy is a joint life policy, it will continue until the death of the last surviving partner. Therefore, the policy has a surrender value of Rs. 50,000 at the time of B's death.
Next, the total amount received from the policy needs to be calculated. The policy has a sum assured of Rs. 2,50,000, and since it was a joint life policy, the full sum assured is payable on the death of the last surviving partner. Since B is the second partner to die, only a part of the sum assured is payable. The amount payable is calculated as follows:
B's share of the sum assured = 2/5 x 2,50,000 = Rs. 1,00,000
The total amount received from the policy is the sum of the surrender value and the amount payable, which is:
Total amount received = Rs. 50,000 + Rs. 1,00,000 = Rs. 1,50,000
The profit on the policy is calculated as the difference between the total amount received and the premium paid. Since the premium paid is not given, it cannot be calculated. However, since the partners had taken the policy for the purpose of sharing profits, it can be assumed that the premium paid is equal to the total amount received. Therefore, the profit on the policy is:
Profit on policy = Rs. 1,50,000 - Rs. 1,50,000 = Rs. 0
Since there is no profit on the policy, there is no need to make any adjustment in the partnership's books on the death of B. The amount received from the policy can be distributed among the partners as follows:
A's share = Rs. 1,50,000/2 = Rs. 75,000
C's share = Rs. 1,50,000/2 = Rs. 75,000
Therefore, A and C will each receive Rs. 75,000 from the policy, and there will be no entry in the partnership's books.
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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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. Can you explain this answer?.
Solutions 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. 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 value?a)Rs. 50,000 credited to all the partners in old ratiob)Rs. 2,50,000 credited to all the partners in old ratioc)Rs 2,00,000 credited to all the partners in old ratiod)No treatment is requiredCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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