CA Foundation Exam > CA Foundation Questions > Balances of M/s. Ram, Rahul and Rohit sharing...
Start Learning for Free
Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?
- a)Rs. 60,000 credited to Revaluation Account.
- b)Rs. 60,000 credited to Joint Life Policy Account.
- c)Rs. 30,000 debited to Ram’s Capital Account.
- d)Either ‘a’ or ‘b’
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in pr...
Treatment for Joint Life Policy
The joint life policy of the partners was surrendered and cash of Rs. 60,000 was obtained. The treatment for this is as follows:
- Option a: Rs. 60,000 credited to Revaluation Account
- Option b: Rs. 60,000 credited to Joint Life Policy Account
Out of these two options, the correct answer is option 'B', i.e., Rs. 60,000 credited to Joint Life Policy Account. This is because the Joint Life Policy Account is a nominal account and represents an expense. When the policy is surrendered and cash is obtained, it is treated as a realization of the expense. Hence, the amount received should be credited to the Joint Life Policy Account.
It is important to note that the Revaluation Account is a nominal account that is used to adjust the capital accounts of the partners in case of any revaluation of assets and liabilities. Since there is no revaluation involved in this transaction, option 'A' is not the correct treatment.
Conclusion
In conclusion, when a joint life policy of the partners is surrendered and cash is obtained, it should be credited to the Joint Life Policy Account as it represents the realization of an expense. The Revaluation Account should only be used in case of any revaluation of assets and liabilities.
The joint life policy of the partners was surrendered and cash of Rs. 60,000 was obtained. The treatment for this is as follows:
- Option a: Rs. 60,000 credited to Revaluation Account
- Option b: Rs. 60,000 credited to Joint Life Policy Account
Out of these two options, the correct answer is option 'B', i.e., Rs. 60,000 credited to Joint Life Policy Account. This is because the Joint Life Policy Account is a nominal account and represents an expense. When the policy is surrendered and cash is obtained, it is treated as a realization of the expense. Hence, the amount received should be credited to the Joint Life Policy Account.
It is important to note that the Revaluation Account is a nominal account that is used to adjust the capital accounts of the partners in case of any revaluation of assets and liabilities. Since there is no revaluation involved in this transaction, option 'A' is not the correct treatment.
Conclusion
In conclusion, when a joint life policy of the partners is surrendered and cash is obtained, it should be credited to the Joint Life Policy Account as it represents the realization of an expense. The Revaluation Account should only be used in case of any revaluation of assets and liabilities.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer?
Question Description
Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer? 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 Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer?.
Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer? 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 Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?a)Rs. 60,000 credited to Revaluation Account.b)Rs. 60,000 credited to Joint Life Policy Account.c)Rs. 30,000 debited to Rams Capital Account.d)Either a or bCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup