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Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000?
Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000?
Most Upvoted Answer
A)Analyse the case given below and answer the questions that follow: "...
Analysis of the Case:
Initial Capital Contribution:
- M: 4,00,000
- T: 3,00,000
- S: 2,00,000
Initial Profit Sharing Ratio: 1/2:3
Revised Profit Sharing Ratio: 3/2:1
Debit Balance in Profit and Loss Account: 30,000
General Reserve: 60,000
Value of the Firm: 2,10,000
Recording of Previously Unrecorded Asset: 21,000
Explanation:
Adjustment for the Revaluation of Assets:
- The value of the firm is determined to be 2,10,000 based on the new profit-sharing ratio.
- The revaluation surplus of 30,000 in the profit and loss account and 60,000 in the general reserve will be transferred to partners' capital accounts based on their new profit-sharing ratio.
Recording of Previously Unrecorded Asset:
- The previously unrecorded asset worth 21,000 will be added to the balance sheet as an asset.
- This will increase the total assets of the firm and will be reflected in the partners' capital accounts based on their profit-sharing ratio.
Final Capital Balances:
- M: (4,00,000 + 30,000 + 60,000 + 21,000) = 5,11,000
- T: (3,00,000 + 30,000 + 60,000) = 3,90,000
- S: (2,00,000 + 30,000 + 60,000) = 2,90,000
Conclusion:
- The revaluation of assets and the recording of the previously unrecorded asset will result in an increase in the total assets and the capital balances of the partners based on their revised profit-sharing ratio.
Initial Capital Contribution:
- M: 4,00,000
- T: 3,00,000
- S: 2,00,000
Initial Profit Sharing Ratio: 1/2:3
Revised Profit Sharing Ratio: 3/2:1
Debit Balance in Profit and Loss Account: 30,000
General Reserve: 60,000
Value of the Firm: 2,10,000
Recording of Previously Unrecorded Asset: 21,000
Explanation:
Adjustment for the Revaluation of Assets:
- The value of the firm is determined to be 2,10,000 based on the new profit-sharing ratio.
- The revaluation surplus of 30,000 in the profit and loss account and 60,000 in the general reserve will be transferred to partners' capital accounts based on their new profit-sharing ratio.
Recording of Previously Unrecorded Asset:
- The previously unrecorded asset worth 21,000 will be added to the balance sheet as an asset.
- This will increase the total assets of the firm and will be reflected in the partners' capital accounts based on their profit-sharing ratio.
Final Capital Balances:
- M: (4,00,000 + 30,000 + 60,000 + 21,000) = 5,11,000
- T: (3,00,000 + 30,000 + 60,000) = 3,90,000
- S: (2,00,000 + 30,000 + 60,000) = 2,90,000
Conclusion:
- The revaluation of assets and the recording of the previously unrecorded asset will result in an increase in the total assets and the capital balances of the partners based on their revised profit-sharing ratio.
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A)Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000?
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A)Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A)Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A)Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000?.
A)Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A)Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A)Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000?.
Solutions for A)Analyse the case given below and answer the questions that follow: "M", "T" and "S" are partners in a firm sharing profits and losses in the ratio of (1/2) / 3 Their capitals on 31st March, 2017 were 4,00,000, 3,00,000 and 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as (3/2) / 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account 30,000 and general reserve of 60,000. The value of the firm was decided a * t deg * 2.1 * 0 It was also decided that the value of an asset which was previously not recorded in the books will be recorded with 21,000? in English & in Hindi are available as part of our courses for Commerce.
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