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P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?
- a)Rs.6,00,000 to be distributed to all the partners in old ratio
- b)Rs.5,20,000 to be distributed to all the partners in old ratio
- c)Rs.80,000 to be distributed to all the partners in old ratio
- d)Distribute JLP reserve account in old profit sharing ratio.
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
P, Q, and R are partners sharing profits and losses in the ratio of 3:...
Explanation:
To understand the treatment in the Partners Capital A/cs, let's break down the given information and analyze each aspect step by step.
Step 1: Profit Sharing Ratio
Initially, the partners P, Q, and R share profits and losses in the ratio of 3:2:1. However, after R's retirement, the future profit sharing ratio is 2:1.
Step 2: Joint Life Policy (JLP)
There is a joint life policy with a sum assured of Rs.6,00,000 and a surrender value of Rs.80,000.
Step 3: Treatment of JLP in Partner's Capital A/cs
To determine the treatment in the Partners Capital A/cs, we need to consider the following points:
3.1 Surrender Value of JLP
The surrender value of the joint life policy is Rs.80,000.
3.2 Distribution of JLP Surrender Value
According to the given options, the JLP surrender value should be distributed to all partners in the old profit sharing ratio.
3.3 Treatment of JLP Surrender Value in Partner's Capital A/cs
Since the surrender value is considered as a reserve, it should be distributed to the partners in their old profit sharing ratio.
3.4 Distribution of JLP Reserve Account
According to the correct answer option 'D', the JLP reserve account should be distributed in the old profit sharing ratio.
Conclusion:
Based on the above analysis, the treatment in the Partners Capital A/cs should be to distribute the JLP reserve account in the old profit sharing ratio.
To understand the treatment in the Partners Capital A/cs, let's break down the given information and analyze each aspect step by step.
Step 1: Profit Sharing Ratio
Initially, the partners P, Q, and R share profits and losses in the ratio of 3:2:1. However, after R's retirement, the future profit sharing ratio is 2:1.
Step 2: Joint Life Policy (JLP)
There is a joint life policy with a sum assured of Rs.6,00,000 and a surrender value of Rs.80,000.
Step 3: Treatment of JLP in Partner's Capital A/cs
To determine the treatment in the Partners Capital A/cs, we need to consider the following points:
3.1 Surrender Value of JLP
The surrender value of the joint life policy is Rs.80,000.
3.2 Distribution of JLP Surrender Value
According to the given options, the JLP surrender value should be distributed to all partners in the old profit sharing ratio.
3.3 Treatment of JLP Surrender Value in Partner's Capital A/cs
Since the surrender value is considered as a reserve, it should be distributed to the partners in their old profit sharing ratio.
3.4 Distribution of JLP Reserve Account
According to the correct answer option 'D', the JLP reserve account should be distributed in the old profit sharing ratio.
Conclusion:
Based on the above analysis, the treatment in the Partners Capital A/cs should be to distribute the JLP reserve account in the old profit sharing ratio.
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P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. Can you explain this answer?
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P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. 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 P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. 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 P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. Can you explain this answer?.
P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. 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 P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. 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 P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. Can you explain this answer?.
Solutions for P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?a)Rs.6,00,000 to be distributed to all the partners in old ratiob)Rs.5,20,000 to be distributed to all the partners in old ratioc)Rs.80,000 to be distributed to all the partners in old ratiod)Distribute JLP reserve account in old profit sharing ratio.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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