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Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.
- a)Rs. 3,50,000 each
- b)Rs. 3,20,000 each
- c)Rs. 1,90,000 each
- d)Rs. 1,30,000 each.
Correct answer is option 'A'. Can you explain this answer?
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Balance of A, B and C sharing profits and losses in proportionate to t...
To find the balance of Partner A, we need to calculate the following:
1. Capital balance after A's retirement:
Total capital of the firm before retirement = A's capital + B's capital + C's capital + JLP Reserve and JLP
= Rs. 2,00,000 + Rs. 3,00,000 + Rs. 2,00,000 + Rs. 80,000
= Rs. 7,80,000
2. A's capital after retirement:
A's capital after retirement = A's capital - Amount due to A settled on retirement
= Rs. 2,00,000 - 50% of Rs. 2,00,000
= Rs. 1,00,000
3. B and C's capital after A's retirement:
B and C's capital after A's retirement = Total capital of the firm before retirement - A's capital after retirement
= Rs. 7,80,000 - Rs. 1,00,000
= Rs. 6,80,000
4. New capital ratio of B and C:
B and C's new capital ratio = B's capital after retirement : C's capital after retirement
= Rs. 6,80,000 : Rs. 6,80,000
= 1:1
5. Amount due to A after retirement:
Amount due to A after retirement = Amount due to A settled on retirement - Cash obtained from Joint Life Policy
= 50% of Rs. 2,00,000 - Rs. 80,000
= Rs. 1,00,000 - Rs. 80,000
= Rs. 20,000
Now, to calculate the balance of Partner A, we need to consider the revaluation loss and goodwill:
6. Revaluation loss to be shared by B and C:
Revaluation loss to be shared by B and C = Revaluation loss - Amount due to A after retirement
= Rs. 10,000 - Rs. 20,000
= -Rs. 10,000 (negative sign indicates that this loss is to be borne by A)
7. New capital balance of B and C:
B's new capital balance = B's capital after retirement - Revaluation loss to be shared by B and C
= Rs. 6,80,000 - (-Rs. 10,000)
= Rs. 6,90,000
C's new capital balance = C's capital after retirement - Revaluation loss to be shared by B and C
= Rs. 6,80,000 - (-Rs. 10,000)
= Rs. 6,90,000
8. Balance of Partner A:
Balance of Partner A = A's capital after retirement + Amount due to A after retirement
= Rs. 1,00,000 + Rs. 20,000
= Rs. 1,20,000
Therefore, the balance of Partner A is Rs. 1,20,000.
1. Capital balance after A's retirement:
Total capital of the firm before retirement = A's capital + B's capital + C's capital + JLP Reserve and JLP
= Rs. 2,00,000 + Rs. 3,00,000 + Rs. 2,00,000 + Rs. 80,000
= Rs. 7,80,000
2. A's capital after retirement:
A's capital after retirement = A's capital - Amount due to A settled on retirement
= Rs. 2,00,000 - 50% of Rs. 2,00,000
= Rs. 1,00,000
3. B and C's capital after A's retirement:
B and C's capital after A's retirement = Total capital of the firm before retirement - A's capital after retirement
= Rs. 7,80,000 - Rs. 1,00,000
= Rs. 6,80,000
4. New capital ratio of B and C:
B and C's new capital ratio = B's capital after retirement : C's capital after retirement
= Rs. 6,80,000 : Rs. 6,80,000
= 1:1
5. Amount due to A after retirement:
Amount due to A after retirement = Amount due to A settled on retirement - Cash obtained from Joint Life Policy
= 50% of Rs. 2,00,000 - Rs. 80,000
= Rs. 1,00,000 - Rs. 80,000
= Rs. 20,000
Now, to calculate the balance of Partner A, we need to consider the revaluation loss and goodwill:
6. Revaluation loss to be shared by B and C:
Revaluation loss to be shared by B and C = Revaluation loss - Amount due to A after retirement
= Rs. 10,000 - Rs. 20,000
= -Rs. 10,000 (negative sign indicates that this loss is to be borne by A)
7. New capital balance of B and C:
B's new capital balance = B's capital after retirement - Revaluation loss to be shared by B and C
= Rs. 6,80,000 - (-Rs. 10,000)
= Rs. 6,90,000
C's new capital balance = C's capital after retirement - Revaluation loss to be shared by B and C
= Rs. 6,80,000 - (-Rs. 10,000)
= Rs. 6,90,000
8. Balance of Partner A:
Balance of Partner A = A's capital after retirement + Amount due to A after retirement
= Rs. 1,00,000 + Rs. 20,000
= Rs. 1,20,000
Therefore, the balance of Partner A is Rs. 1,20,000.
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Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer?
Question Description
Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. 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 Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. 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 Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer?.
Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. 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 Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. 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 Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.a)Rs. 3,50,000 eachb)Rs. 3,20,000 eachc)Rs. 1,90,000 eachd)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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