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At the time of retirement of a partner, firm gets____________from the insurance company against the Joint Life Policy taken jointly for all the partners.
- a)Policy Amount
- b)Surrender Value
- c)Policy Value for the retiring partner and Surrender Value for the rest.
- d)Surrender Value for all the partners
Correct answer is option 'B'. Can you explain this answer?
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At the time of retirement of a partner, firm gets____________from the ...
Reason Behind This : When a partner will die, insurance policy will discontinue. So, firm only gets surrender value as per the rules and regulations of insurance companies in India.
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At the time of retirement of a partner, firm gets____________from the ...
Retirement of a partner from a firm is a significant event that affects the financial position of the company. To minimize the impact of such a situation, firms generally take Joint Life Insurance Policies for all partners. In case of retirement of a partner, the firm can claim for the surrender value of the insurance policy. The following points explain the answer in more detail:
Joint Life Policy
A Joint Life Policy is a type of insurance policy that covers more than one person's life. In the case of a partnership firm, all partners' lives are covered under the policy. The policy is taken to protect the firm's financial interests in case of the death or retirement of a partner.
Surrender Value
The surrender value is the amount that the insurance company pays to the policyholder when the policy is surrendered before the maturity date. In the case of a Joint Life Policy, the surrender value is payable to the firm at the time of retirement of a partner. The surrender value is calculated based on the premiums paid and the policy's terms and conditions.
Policy Value for the Retiring Partner
The retiring partner's share in the Joint Life Policy is calculated based on the partnership agreement. The policy value for the retiring partner is the amount that the firm receives from the insurance company, which is equal to the retiring partner's share in the policy.
Surrender Value for the Rest
The remaining partners' share in the Joint Life Policy is calculated based on the partnership agreement. The surrender value for the rest of the partners is the amount that the firm receives from the insurance company, which is equal to the remaining partners' share in the policy.
Conclusion
In conclusion, at the time of retirement of a partner, the firm receives the surrender value from the insurance company against the Joint Life Policy taken jointly for all the partners. The policy value for the retiring partner and the surrender value for the rest of the partners are calculated based on the partnership agreement.
Joint Life Policy
A Joint Life Policy is a type of insurance policy that covers more than one person's life. In the case of a partnership firm, all partners' lives are covered under the policy. The policy is taken to protect the firm's financial interests in case of the death or retirement of a partner.
Surrender Value
The surrender value is the amount that the insurance company pays to the policyholder when the policy is surrendered before the maturity date. In the case of a Joint Life Policy, the surrender value is payable to the firm at the time of retirement of a partner. The surrender value is calculated based on the premiums paid and the policy's terms and conditions.
Policy Value for the Retiring Partner
The retiring partner's share in the Joint Life Policy is calculated based on the partnership agreement. The policy value for the retiring partner is the amount that the firm receives from the insurance company, which is equal to the retiring partner's share in the policy.
Surrender Value for the Rest
The remaining partners' share in the Joint Life Policy is calculated based on the partnership agreement. The surrender value for the rest of the partners is the amount that the firm receives from the insurance company, which is equal to the remaining partners' share in the policy.
Conclusion
In conclusion, at the time of retirement of a partner, the firm receives the surrender value from the insurance company against the Joint Life Policy taken jointly for all the partners. The policy value for the retiring partner and the surrender value for the rest of the partners are calculated based on the partnership agreement.
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At the time of retirement of a partner, firm gets____________from the insurance company against the Joint Life Policy taken jointly for all the partners.a)Policy Amountb)Surrender Valuec)Policy Value for the retiring partner and Surrender Value for the rest.d)Surrender Value for all the partnersCorrect answer is option 'B'. Can you explain this answer?
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At the time of retirement of a partner, firm gets____________from the insurance company against the Joint Life Policy taken jointly for all the partners.a)Policy Amountb)Surrender Valuec)Policy Value for the retiring partner and Surrender Value for the rest.d)Surrender Value for all the partnersCorrect 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 At the time of retirement of a partner, firm gets____________from the insurance company against the Joint Life Policy taken jointly for all the partners.a)Policy Amountb)Surrender Valuec)Policy Value for the retiring partner and Surrender Value for the rest.d)Surrender Value for all the partnersCorrect 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 At the time of retirement of a partner, firm gets____________from the insurance company against the Joint Life Policy taken jointly for all the partners.a)Policy Amountb)Surrender Valuec)Policy Value for the retiring partner and Surrender Value for the rest.d)Surrender Value for all the partnersCorrect answer is option 'B'. Can you explain this answer?.
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