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A and B are partners of firm sharing profits in the ratio of 3:2 C was admitted for the 1/5th share of profit machinery would be appreciated by 105 ( book value Rs 80,000) and the building would be depreciated by 205 (Rs 2,00,000) unrecorded debtors of Rs. 1,250 would be bought to book and Creditor of Rs. 27,500 died and need not to pay anything . what will be the profit/loss in revaluation?
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A and B are partners of firm sharing profits in the ratio of 3:2 C was...
Revaluation of Assets and Liabilities
The given problem involves the revaluation of assets and liabilities due to the admission of a new partner in the firm. Let's break down the given information into headings:
Partnership Ratio:
- A and B share profits in the ratio of 3:2
Admission of C:
- C is admitted for 1/5th share of profit
Revaluation of Machinery:
- Machinery appreciated by Rs. 105
- Book value of the machinery was Rs. 80,000
Revaluation of Building:
- Building depreciated by Rs. 205
- Book value of the building was Rs. 2,00,000
Treatment of Unrecorded Debtors:
- Unrecorded debtors worth Rs. 1,250 are brought to book
Treatment of Creditor:
- Creditor worth Rs. 27,500 died and no need to pay anything
Calculation of New Profit Sharing Ratio:
- A:B:C = (3x5):(2x5):(1x5) = 15:10:5
Calculation of New Values of Assets and Liabilities:
- Machinery: Rs. 80,000 + Rs. 105 = Rs. 80,105
- Building: Rs. 2,00,000 - Rs. 205 = Rs. 1,99,795
- Debtors: Rs. 1,250
- Creditor: Nil
Calculation of Revaluation Profit/Loss:
- Total Increase in Assets = Rs. 105 + Rs. 1,250 = Rs. 1,355
- Total Decrease in Liabilities = Rs. 205
- Revaluation Profit = Total Increase in Assets - Total Decrease in Liabilities
= Rs. 1,355 - Rs. 205 = Rs. 1,150
Final Profit Sharing Ratio:
- A:B:C = 15:10:5
- Total Ratio = 30
- A's Share = (15/30) x Profit = 1/2 x Profit
- B's Share = (10/30) x Profit = 1/3 x Profit
- C's Share = (5/30) x Profit = 1/6 x Profit
Conclusion:
- The firm has a revaluation profit of Rs. 1,150
- The new profit sharing ratio is 15:10:5 for A, B, and C respectively.
The given problem involves the revaluation of assets and liabilities due to the admission of a new partner in the firm. Let's break down the given information into headings:
Partnership Ratio:
- A and B share profits in the ratio of 3:2
Admission of C:
- C is admitted for 1/5th share of profit
Revaluation of Machinery:
- Machinery appreciated by Rs. 105
- Book value of the machinery was Rs. 80,000
Revaluation of Building:
- Building depreciated by Rs. 205
- Book value of the building was Rs. 2,00,000
Treatment of Unrecorded Debtors:
- Unrecorded debtors worth Rs. 1,250 are brought to book
Treatment of Creditor:
- Creditor worth Rs. 27,500 died and no need to pay anything
Calculation of New Profit Sharing Ratio:
- A:B:C = (3x5):(2x5):(1x5) = 15:10:5
Calculation of New Values of Assets and Liabilities:
- Machinery: Rs. 80,000 + Rs. 105 = Rs. 80,105
- Building: Rs. 2,00,000 - Rs. 205 = Rs. 1,99,795
- Debtors: Rs. 1,250
- Creditor: Nil
Calculation of Revaluation Profit/Loss:
- Total Increase in Assets = Rs. 105 + Rs. 1,250 = Rs. 1,355
- Total Decrease in Liabilities = Rs. 205
- Revaluation Profit = Total Increase in Assets - Total Decrease in Liabilities
= Rs. 1,355 - Rs. 205 = Rs. 1,150
Final Profit Sharing Ratio:
- A:B:C = 15:10:5
- Total Ratio = 30
- A's Share = (15/30) x Profit = 1/2 x Profit
- B's Share = (10/30) x Profit = 1/3 x Profit
- C's Share = (5/30) x Profit = 1/6 x Profit
Conclusion:
- The firm has a revaluation profit of Rs. 1,150
- The new profit sharing ratio is 15:10:5 for A, B, and C respectively.
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A and B are partners of firm sharing profits in the ratio of 3:2 C was admitted for the 1/5th share of profit machinery would be appreciated by 105 ( book value Rs 80,000) and the building would be depreciated by 205 (Rs 2,00,000) unrecorded debtors of Rs. 1,250 would be bought to book and Creditor of Rs. 27,500 died and need not to pay anything . what will be the profit/loss in revaluation?
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A and B are partners of firm sharing profits in the ratio of 3:2 C was admitted for the 1/5th share of profit machinery would be appreciated by 105 ( book value Rs 80,000) and the building would be depreciated by 205 (Rs 2,00,000) unrecorded debtors of Rs. 1,250 would be bought to book and Creditor of Rs. 27,500 died and need not to pay anything . what will be the profit/loss in revaluation? 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 and B are partners of firm sharing profits in the ratio of 3:2 C was admitted for the 1/5th share of profit machinery would be appreciated by 105 ( book value Rs 80,000) and the building would be depreciated by 205 (Rs 2,00,000) unrecorded debtors of Rs. 1,250 would be bought to book and Creditor of Rs. 27,500 died and need not to pay anything . what will be the profit/loss in revaluation? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners of firm sharing profits in the ratio of 3:2 C was admitted for the 1/5th share of profit machinery would be appreciated by 105 ( book value Rs 80,000) and the building would be depreciated by 205 (Rs 2,00,000) unrecorded debtors of Rs. 1,250 would be bought to book and Creditor of Rs. 27,500 died and need not to pay anything . what will be the profit/loss in revaluation?.
A and B are partners of firm sharing profits in the ratio of 3:2 C was admitted for the 1/5th share of profit machinery would be appreciated by 105 ( book value Rs 80,000) and the building would be depreciated by 205 (Rs 2,00,000) unrecorded debtors of Rs. 1,250 would be bought to book and Creditor of Rs. 27,500 died and need not to pay anything . what will be the profit/loss in revaluation? 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 and B are partners of firm sharing profits in the ratio of 3:2 C was admitted for the 1/5th share of profit machinery would be appreciated by 105 ( book value Rs 80,000) and the building would be depreciated by 205 (Rs 2,00,000) unrecorded debtors of Rs. 1,250 would be bought to book and Creditor of Rs. 27,500 died and need not to pay anything . what will be the profit/loss in revaluation? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners of firm sharing profits in the ratio of 3:2 C was admitted for the 1/5th share of profit machinery would be appreciated by 105 ( book value Rs 80,000) and the building would be depreciated by 205 (Rs 2,00,000) unrecorded debtors of Rs. 1,250 would be bought to book and Creditor of Rs. 27,500 died and need not to pay anything . what will be the profit/loss in revaluation?.
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