Commerce Exam > Commerce Questions > Q. 12. X, Y and Z are partners sharing profit...
Start Learning for Free
Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:?
Most Upvoted Answer
Q. 12. X, Y and Z are partners sharing profits and losses equally. The...
Solution:
Calculation of Total Assets:
X's Personal Assets = 20,000
Y's Personal Assets = -15,000 (Negative sign indicates that Y has a loan of 15,000 from the firm)
Z's Personal Assets = -10,000 (Negative sign indicates that Z has a loan of 10,000 from the firm)
Therefore, the total personal assets of the partners = 20,000 - 15,000 - 10,000 = 5,000
X's Capital Balance = 80,000
Y's Capital Balance = 60,000
Z's Capital Balance = 40,000
Therefore, the total capital of the partners = 80,000 + 60,000 + 40,000 = 1,80,000
Total Assets = Personal Assets + Capital
Total Assets = 5,000 + 1,80,000 = 1,85,000
Calculation of Total Liabilities:
As the profit and loss sharing ratio is equal, each partner has an equal share in the profits and losses of the firm.
Therefore, the total liabilities of the firm = Total Assets - Total Capital
Total Liabilities = 1,85,000 - 1,80,000 = 5,000
Explanation:
The liabilities of the firm are 5,000. This means that the partners are liable to pay this amount to the firm in case the firm incurs any losses. Since the partners have an equal share in the profits and losses of the firm, they are equally liable to pay this amount.
The personal assets of the partners are not relevant for the calculation of the extent of their liability in the firm as they are separate from the assets and liabilities of the firm.
Therefore, the extent of the partners' liability in the firm is 5,000.
Calculation of Total Assets:
X's Personal Assets = 20,000
Y's Personal Assets = -15,000 (Negative sign indicates that Y has a loan of 15,000 from the firm)
Z's Personal Assets = -10,000 (Negative sign indicates that Z has a loan of 10,000 from the firm)
Therefore, the total personal assets of the partners = 20,000 - 15,000 - 10,000 = 5,000
X's Capital Balance = 80,000
Y's Capital Balance = 60,000
Z's Capital Balance = 40,000
Therefore, the total capital of the partners = 80,000 + 60,000 + 40,000 = 1,80,000
Total Assets = Personal Assets + Capital
Total Assets = 5,000 + 1,80,000 = 1,85,000
Calculation of Total Liabilities:
As the profit and loss sharing ratio is equal, each partner has an equal share in the profits and losses of the firm.
Therefore, the total liabilities of the firm = Total Assets - Total Capital
Total Liabilities = 1,85,000 - 1,80,000 = 5,000
Explanation:
The liabilities of the firm are 5,000. This means that the partners are liable to pay this amount to the firm in case the firm incurs any losses. Since the partners have an equal share in the profits and losses of the firm, they are equally liable to pay this amount.
The personal assets of the partners are not relevant for the calculation of the extent of their liability in the firm as they are separate from the assets and liabilities of the firm.
Therefore, the extent of the partners' liability in the firm is 5,000.
Community Answer
Q. 12. X, Y and Z are partners sharing profits and losses equally. The...
135,000
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:?
Question Description
Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:?.
Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:?.
Solutions for Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:? defined & explained in the simplest way possible. Besides giving the explanation of
Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:?, a detailed solution for Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:? has been provided alongside types of Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:? theory, EduRev gives you an
ample number of questions to practice Q. 12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 60,000 and 40,000 respectively. Their personal assets are worth as follows: X20,000, Y-15,000 and Z-10,000. The extent of their liability in the firm would be:? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup