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Read the following information and answer the given questions:
Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.
After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.
Q. What will be the share of Angad in profit on revaluation?
- a)₹6,000
- b)₹4,000
- c)₹2,000
- d)₹12,000
Correct answer is option 'B'. Can you explain this answer?
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Read the following information and answer the given questions:Parth, ...
Angad’s Share = ₹12000× 2 / 6 = ₹ 4,000
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Read the following information and answer the given questions:Parth, ...
Understanding the Profit on Revaluation
When Angad retires, his claim from the firm includes his share of goodwill and capital. After the revaluation of assets, specifically the unrecorded furniture valued at ₹12,000, we need to determine Angad's share of profit from this revaluation.
Revaluation Profit Calculation
- The total revaluation profit is ₹12,000, which comes from recognizing the unrecorded furniture.
- Since Parth, Angad, and Leesha share profits in the ratio of 3:2:1, we first need to calculate each partner's share of the revaluation profit.
Profit Sharing Ratio
- Total parts in the profit-sharing ratio: 3 + 2 + 1 = 6 parts.
- Angad's share of the revaluation profit is calculated as follows:
- Angad's share = (Angad's ratio/Total parts) * Total revaluation profit
- Angad's share = (2/6) * ₹12,000 = ₹4,000.
Final Settlement
- The total amount due to Angad, including his share of furniture and cash, was initially ₹50,000.
- After accounting for the revaluation profit of ₹4,000, the revised amount would be adjusted accordingly.
Conclusion
- Therefore, Angad's share of profit on revaluation is ₹4,000, making option 'B' the correct answer.
- This amount is crucial as it increases Angad's entitlement during his retirement settlement.
When Angad retires, his claim from the firm includes his share of goodwill and capital. After the revaluation of assets, specifically the unrecorded furniture valued at ₹12,000, we need to determine Angad's share of profit from this revaluation.
Revaluation Profit Calculation
- The total revaluation profit is ₹12,000, which comes from recognizing the unrecorded furniture.
- Since Parth, Angad, and Leesha share profits in the ratio of 3:2:1, we first need to calculate each partner's share of the revaluation profit.
Profit Sharing Ratio
- Total parts in the profit-sharing ratio: 3 + 2 + 1 = 6 parts.
- Angad's share of the revaluation profit is calculated as follows:
- Angad's share = (Angad's ratio/Total parts) * Total revaluation profit
- Angad's share = (2/6) * ₹12,000 = ₹4,000.
Final Settlement
- The total amount due to Angad, including his share of furniture and cash, was initially ₹50,000.
- After accounting for the revaluation profit of ₹4,000, the revised amount would be adjusted accordingly.
Conclusion
- Therefore, Angad's share of profit on revaluation is ₹4,000, making option 'B' the correct answer.
- This amount is crucial as it increases Angad's entitlement during his retirement settlement.
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Read the following information and answer the given questions:Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.Q. What will be the share of Angad in profit on revaluation?a)₹6,000b)₹4,000c)₹2,000d)₹12,000Correct answer is option 'B'. Can you explain this answer?
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Read the following information and answer the given questions:Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.Q. What will be the share of Angad in profit on revaluation?a)₹6,000b)₹4,000c)₹2,000d)₹12,000Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following information and answer the given questions:Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.Q. What will be the share of Angad in profit on revaluation?a)₹6,000b)₹4,000c)₹2,000d)₹12,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following information and answer the given questions:Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.Q. What will be the share of Angad in profit on revaluation?a)₹6,000b)₹4,000c)₹2,000d)₹12,000Correct answer is option 'B'. Can you explain this answer?.
Read the following information and answer the given questions:Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.Q. What will be the share of Angad in profit on revaluation?a)₹6,000b)₹4,000c)₹2,000d)₹12,000Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following information and answer the given questions:Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.Q. What will be the share of Angad in profit on revaluation?a)₹6,000b)₹4,000c)₹2,000d)₹12,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following information and answer the given questions:Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.Q. What will be the share of Angad in profit on revaluation?a)₹6,000b)₹4,000c)₹2,000d)₹12,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for Read the following information and answer the given questions:Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.Q. What will be the share of Angad in profit on revaluation?a)₹6,000b)₹4,000c)₹2,000d)₹12,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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