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Cb and a share the profit and losses in 2 ratio 1 ratio 1 respectively in the partnership the assets are to be reduced by 15000 the value when be wishes to retire for from the partnership if each had a capital balance 30000?
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Cb and a share the profit and losses in 2 ratio 1 ratio 1 respectively...
Understanding Partnership Profit and Loss Sharing
In a partnership where profits and losses are shared in the ratios of 2:1:1 among partners C, B, and A respectively, it's essential to consider the implications of asset reductions and partner retirements.
Current Capital Balances
- Each partner has a capital balance of 30,000.
Asset Reduction
- The total assets are being reduced by 15,000.
- This reduction will affect the capital balances of all partners.
Impact of Asset Reduction on Capital Balances
- Total capital = 30,000 (A) + 30,000 (B) + 30,000 (C) = 90,000.
- After reducing assets by 15,000, the new total capital = 90,000 - 15,000 = 75,000.
New Capital Balances
- The loss of 15,000 will be distributed among the partners according to their profit-sharing ratios:
- C (2 parts): (2/4) * 15,000 = 7,500
- B (1 part): (1/4) * 15,000 = 3,750
- A (1 part): (1/4) * 15,000 = 3,750
- New capital balances:
- A: 30,000 - 3,750 = 26,250
- B: 30,000 - 3,750 = 26,250
- C: 30,000 - 7,500 = 22,500
Retirement of Partner B
- When B wishes to retire, their share needs to be settled based on their capital balance.
- The capital balance of B is now 26,250.
Settlement Amount for B
- Upon retirement, B will receive 26,250, which corresponds to their remaining capital balance after the asset reduction.
Conclusion
- The partnership must ensure that the remaining partners adjust their capital contributions and profit-sharing accordingly after B's retirement. This will help maintain balance and equity within the partnership.
In a partnership where profits and losses are shared in the ratios of 2:1:1 among partners C, B, and A respectively, it's essential to consider the implications of asset reductions and partner retirements.
Current Capital Balances
- Each partner has a capital balance of 30,000.
Asset Reduction
- The total assets are being reduced by 15,000.
- This reduction will affect the capital balances of all partners.
Impact of Asset Reduction on Capital Balances
- Total capital = 30,000 (A) + 30,000 (B) + 30,000 (C) = 90,000.
- After reducing assets by 15,000, the new total capital = 90,000 - 15,000 = 75,000.
New Capital Balances
- The loss of 15,000 will be distributed among the partners according to their profit-sharing ratios:
- C (2 parts): (2/4) * 15,000 = 7,500
- B (1 part): (1/4) * 15,000 = 3,750
- A (1 part): (1/4) * 15,000 = 3,750
- New capital balances:
- A: 30,000 - 3,750 = 26,250
- B: 30,000 - 3,750 = 26,250
- C: 30,000 - 7,500 = 22,500
Retirement of Partner B
- When B wishes to retire, their share needs to be settled based on their capital balance.
- The capital balance of B is now 26,250.
Settlement Amount for B
- Upon retirement, B will receive 26,250, which corresponds to their remaining capital balance after the asset reduction.
Conclusion
- The partnership must ensure that the remaining partners adjust their capital contributions and profit-sharing accordingly after B's retirement. This will help maintain balance and equity within the partnership.
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Cb and a share the profit and losses in 2 ratio 1 ratio 1 respectively in the partnership the assets are to be reduced by 15000 the value when be wishes to retire for from the partnership if each had a capital balance 30000?
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Cb and a share the profit and losses in 2 ratio 1 ratio 1 respectively in the partnership the assets are to be reduced by 15000 the value when be wishes to retire for from the partnership if each had a capital balance 30000? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Cb and a share the profit and losses in 2 ratio 1 ratio 1 respectively in the partnership the assets are to be reduced by 15000 the value when be wishes to retire for from the partnership if each had a capital balance 30000? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Cb and a share the profit and losses in 2 ratio 1 ratio 1 respectively in the partnership the assets are to be reduced by 15000 the value when be wishes to retire for from the partnership if each had a capital balance 30000?.
Cb and a share the profit and losses in 2 ratio 1 ratio 1 respectively in the partnership the assets are to be reduced by 15000 the value when be wishes to retire for from the partnership if each had a capital balance 30000? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Cb and a share the profit and losses in 2 ratio 1 ratio 1 respectively in the partnership the assets are to be reduced by 15000 the value when be wishes to retire for from the partnership if each had a capital balance 30000? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Cb and a share the profit and losses in 2 ratio 1 ratio 1 respectively in the partnership the assets are to be reduced by 15000 the value when be wishes to retire for from the partnership if each had a capital balance 30000?.
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