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X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:
- a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 each
- b)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 each
- c)Credited to X, and Z capital accounts with Rs. 2,50,000 each
- d)Credited to Y’s capital account with Rs. 3,00,000 each
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
X, Y, Z are partners sharing profits and losses equally. They took a j...
's capital accounts in their profit sharing ratio
b)Credited to X and Z's capital accounts in their new profit sharing ratio
c)Credited to Y's capital account
d)Credited to the firm's current account
Answer: b) Credited to X and Z's capital accounts in their new profit sharing ratio
Explanation:
Since Y has retired, the partnership firm is now between X and Z only. They have also decided to share profits and losses in the ratio of 2:1. Therefore, the amount of joint life policy should be transferred to their capital accounts in the new profit sharing ratio. Hence, option b) is the correct answer. Option a) is incorrect because Y is no longer a partner in the firm. Option c) is also incorrect because Y has already received his share of the partnership assets upon retirement. Option d) is incorrect because the joint life policy is a partnership asset and not a current liability of the firm.
b)Credited to X and Z's capital accounts in their new profit sharing ratio
c)Credited to Y's capital account
d)Credited to the firm's current account
Answer: b) Credited to X and Z's capital accounts in their new profit sharing ratio
Explanation:
Since Y has retired, the partnership firm is now between X and Z only. They have also decided to share profits and losses in the ratio of 2:1. Therefore, the amount of joint life policy should be transferred to their capital accounts in the new profit sharing ratio. Hence, option b) is the correct answer. Option a) is incorrect because Y is no longer a partner in the firm. Option c) is also incorrect because Y has already received his share of the partnership assets upon retirement. Option d) is incorrect because the joint life policy is a partnership asset and not a current liability of the firm.
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Community Answer
X, Y, Z are partners sharing profits and losses equally. They took a j...
Insurance premium alc....dr
to bank or cash alc
when treated as revenue expense....then, when retirement occurs, surrender value is given by the company rather than policy amount so they received 300000 which is distributed among the three as....
JLP alc... Dr 300000
To X 100000
To Y 100000
To Z 100000
to bank or cash alc
when treated as revenue expense....then, when retirement occurs, surrender value is given by the company rather than policy amount so they received 300000 which is distributed among the three as....
JLP alc... Dr 300000
To X 100000
To Y 100000
To Z 100000
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X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. Can you explain this answer?
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X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. 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 X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. 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 X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. Can you explain this answer?.
X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. 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 X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. 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 X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. Can you explain this answer?.
Solutions for X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as:a)Credited to X, Y and Z’s Capital accounts with Rs. 1,00,000 eachb)Credited to X, Y and Z’s capital accounts with Rs. 1,66,667 eachc)Credited to X, and Z capital accounts with Rs. 2,50,000 eachd)Credited to Y’s capital account with Rs. 3,00,000 eachCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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