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X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 760,000 and $40,000 respectively. Their personal assets are worth as follows: X— 320,000, Y - 15,000 and Z— 310,000. The extent of their liability in the firm would be?
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X, Y and Z are partners sharing profits and losses equally. Their capi...
  • Calculation of Total Capital:


    • X's capital = $80,000

    • Y's capital = $760,000

    • Z's capital = $40,000

    • Total capital = $80,000 + $760,000 + $40,000 = $880,000



  • Calculation of Total Personal Assets:


    • X's personal assets = $320,000

    • Y's personal assets = $15,000

    • Z's personal assets = $310,000

    • Total personal assets = $320,000 + $15,000 + $310,000 = $645,000



  • Calculation of Total Liability:


    • Total assets (capital + personal assets) = $880,000 + $645,000 = $1,525,000

    • As they are equal partners, they share the profits and losses equally.

    • So, their liability in the firm would be:

    • Liability = Total assets - Total capital = $1,525,000 - $880,000 = $645,000



    Therefore, the extent of their liability in the firm would be $645,000. This means that the partners have a joint liability of $645,000 towards the firm's creditors. If the firm fails to meet its financial obligations, the creditors can recover their dues from the personal assets of the partners.
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    X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 760,000 and $40,000 respectively. Their personal assets are worth as follows: X— 320,000, Y - 15,000 and Z— 310,000. The extent of their liability in the firm would be?
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    X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 760,000 and $40,000 respectively. Their personal assets are worth as follows: X— 320,000, Y - 15,000 and Z— 310,000. 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 X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 760,000 and $40,000 respectively. Their personal assets are worth as follows: X— 320,000, Y - 15,000 and Z— 310,000. 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 X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are 80,000, 760,000 and $40,000 respectively. Their personal assets are worth as follows: X— 320,000, Y - 15,000 and Z— 310,000. The extent of their liability in the firm would be?.
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