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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. To which account will the unrecorded piece of furniture be adjusted?
- a)Angad’s Capital Account
- b)Profit and Loss Adjustment Account
- c)Revaluation Account
- d)Profit and Loss Appropriation A/c
Correct answer is option 'C'. Can you explain this answer?
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Read the following information and answer the given questions:Parth, ...
Unrecorded piece of furniture be adjusted in a revaluation account because assets are increasing.
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Read the following information and answer the given questions:Parth, ...
Unrecorded Piece of Furniture:
The unrecorded piece of furniture valued at ₹12,000 needs to be adjusted in the firm's accounts. Let's understand where this adjustment will be made.
Partnership Agreement:
According to the partnership agreement, the profits and losses are shared in the ratio of 3:2:1 among Parth, Angad, and Leesha respectively. However, Angad has retired from the partnership, and his claim, including his capital and entitlements, is ₹50,000.
Adjustment of Angad's Claim:
After determining Angad's claim, it was found that there was an unrecorded piece of furniture valued at ₹12,000. This piece of furniture needs to be recorded and adjusted in the accounts before settling Angad's claim.
Revaluation Account:
The unrecorded piece of furniture valued at ₹12,000 will be adjusted in the Revaluation Account. Revaluation Account is created when there is a change in the value of assets and liabilities of the firm. In this case, the unrecorded piece of furniture, being an asset, needs to be recorded, and its value will be added to the Revaluation Account.
Reason for Adjustment:
The reason for adjusting the unrecorded piece of furniture in the Revaluation Account is to ensure that the firm's books reflect the true and accurate value of assets. By recording the unrecorded piece of furniture, the firm's accounts will be updated, and the value of the asset will be reflected in the Revaluation Account.
Settlement with Angad:
Once the unrecorded piece of furniture is adjusted in the Revaluation Account, the revised amount due to Angad will be determined. Angad's claim, including his capital and entitlements, is ₹50,000. After adjusting the unrecorded piece of furniture, the balance amount due to Angad will be settled by giving him this piece of furniture and the remaining balance in cash.
Therefore, the unrecorded piece of furniture will be adjusted in the Revaluation Account to ensure accurate valuation of assets and liabilities.
The unrecorded piece of furniture valued at ₹12,000 needs to be adjusted in the firm's accounts. Let's understand where this adjustment will be made.
Partnership Agreement:
According to the partnership agreement, the profits and losses are shared in the ratio of 3:2:1 among Parth, Angad, and Leesha respectively. However, Angad has retired from the partnership, and his claim, including his capital and entitlements, is ₹50,000.
Adjustment of Angad's Claim:
After determining Angad's claim, it was found that there was an unrecorded piece of furniture valued at ₹12,000. This piece of furniture needs to be recorded and adjusted in the accounts before settling Angad's claim.
Revaluation Account:
The unrecorded piece of furniture valued at ₹12,000 will be adjusted in the Revaluation Account. Revaluation Account is created when there is a change in the value of assets and liabilities of the firm. In this case, the unrecorded piece of furniture, being an asset, needs to be recorded, and its value will be added to the Revaluation Account.
Reason for Adjustment:
The reason for adjusting the unrecorded piece of furniture in the Revaluation Account is to ensure that the firm's books reflect the true and accurate value of assets. By recording the unrecorded piece of furniture, the firm's accounts will be updated, and the value of the asset will be reflected in the Revaluation Account.
Settlement with Angad:
Once the unrecorded piece of furniture is adjusted in the Revaluation Account, the revised amount due to Angad will be determined. Angad's claim, including his capital and entitlements, is ₹50,000. After adjusting the unrecorded piece of furniture, the balance amount due to Angad will be settled by giving him this piece of furniture and the remaining balance in cash.
Therefore, the unrecorded piece of furniture will be adjusted in the Revaluation Account to ensure accurate valuation of assets and liabilities.
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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. To which account will the unrecorded piece of furniture be adjusted?a)Angad’s Capital Accountb)Profit and Loss Adjustment Accountc)Revaluation Accountd)Profit and Loss Appropriation A/cCorrect answer is option 'C'. 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. To which account will the unrecorded piece of furniture be adjusted?a)Angad’s Capital Accountb)Profit and Loss Adjustment Accountc)Revaluation Accountd)Profit and Loss Appropriation A/cCorrect answer is option 'C'. 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. To which account will the unrecorded piece of furniture be adjusted?a)Angad’s Capital Accountb)Profit and Loss Adjustment Accountc)Revaluation Accountd)Profit and Loss Appropriation A/cCorrect answer is option 'C'. 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. To which account will the unrecorded piece of furniture be adjusted?a)Angad’s Capital Accountb)Profit and Loss Adjustment Accountc)Revaluation Accountd)Profit and Loss Appropriation A/cCorrect answer is option 'C'. 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. To which account will the unrecorded piece of furniture be adjusted?a)Angad’s Capital Accountb)Profit and Loss Adjustment Accountc)Revaluation Accountd)Profit and Loss Appropriation A/cCorrect answer is option 'C'. 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. To which account will the unrecorded piece of furniture be adjusted?a)Angad’s Capital Accountb)Profit and Loss Adjustment Accountc)Revaluation Accountd)Profit and Loss Appropriation A/cCorrect answer is option 'C'. 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. To which account will the unrecorded piece of furniture be adjusted?a)Angad’s Capital Accountb)Profit and Loss Adjustment Accountc)Revaluation Accountd)Profit and Loss Appropriation A/cCorrect answer is option 'C'. 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. To which account will the unrecorded piece of furniture be adjusted?a)Angad’s Capital Accountb)Profit and Loss Adjustment Accountc)Revaluation Accountd)Profit and Loss Appropriation A/cCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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