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X, Y and Z are partners sharing profits and losses equally. Their capital balances on Dec31,2015 are Rs80,000,Rs60,000 and Rs40,000 respectively. Their private properties are worth as follows : X - Rs20,000,Y−Rs50,000andZ−Rs10,000$$. The extent of their liability in the firm is?
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X, Y and Z are partners sharing profits and losses equally. Their capi...
Liability of X, Y and Z in the Firm

Capital Balances

  • X - Rs80,000

  • Y - Rs60,000

  • Z - Rs40,000



Private Properties

  • X - Rs20,000

  • Y - Rs50,000

  • Z - Rs10,000



Calculation of Total Assets
Total Assets = (Capital Balances) + (Private Properties)
= (Rs80,000 + Rs60,000 + Rs40,000) + (Rs20,000 + Rs50,000 + Rs10,000)
= Rs2,60,000

Calculation of Total Liabilities
As the partners are sharing profits and losses equally, their liability in the firm is also equal. Therefore,
Total Liabilities = Total Assets / Number of Partners
= Rs2,60,000 / 3
= Rs86,666.67

Therefore, the extent of X, Y and Z's liability in the firm is Rs86,666.67 each.

Explanation
In a partnership firm, the partners are jointly and severally liable for all the debts and obligations of the firm. The liability of each partner in the firm is determined based on their capital contribution in the firm. In this case, X, Y and Z are sharing profits and losses equally, which means that they also share the liabilities of the firm equally.

To calculate the extent of their liability in the firm, we need to consider their capital balances and private properties. The total assets of the firm are the sum of their capital balances and private properties. From this, we can calculate the total liabilities of the firm by dividing the total assets by the number of partners. This gives us the extent of each partner's liability in the firm.

In this case, the total assets of the firm are Rs2,60,000 and there are 3 partners. Therefore, the total liabilities of the firm are Rs86,666.67 each for X, Y and Z.
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X, Y and Z are partners sharing profits and losses equally. Their capital balances on Dec31,2015 are Rs80,000,Rs60,000 and Rs40,000 respectively. Their private properties are worth as follows : X - Rs20,000,Y−Rs50,000andZ−Rs10,000$$. The extent of their liability in the firm is?
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X, Y and Z are partners sharing profits and losses equally. Their capital balances on Dec31,2015 are Rs80,000,Rs60,000 and Rs40,000 respectively. Their private properties are worth as follows : X - Rs20,000,Y−Rs50,000andZ−Rs10,000$$. The extent of their liability in the firm is? for Commerce 2025 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 Dec31,2015 are Rs80,000,Rs60,000 and Rs40,000 respectively. Their private properties are worth as follows : X - Rs20,000,Y−Rs50,000andZ−Rs10,000$$. The extent of their liability in the firm is? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X, Y and Z are partners sharing profits and losses equally. Their capital balances on Dec31,2015 are Rs80,000,Rs60,000 and Rs40,000 respectively. Their private properties are worth as follows : X - Rs20,000,Y−Rs50,000andZ−Rs10,000$$. The extent of their liability in the firm is?.
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