CA Foundation Exam > CA Foundation Questions > Balances of A, B and C sharing profits and lo...
Start Learning for Free
Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.
Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Account
Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Account
- a)Rs. 3,50,000 each
- b)Rs. 3,20,000 each.
- c)Rs. 1,90,000 each.
- d)Rs. 1,30,000 each.
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Balances of A, B and C sharing profits and losses in proportionate to ...
Calculation of Balances of Partners Capital Accounts
Retirement of Partner A
- A's Capital Account balance = Rs. 2,00,000
- A's share in JLP Reserve and JLP = Rs. 80,000
- Total amount due to A = Rs. 2,80,000
Distribution of A's share
- 50% of A's share = Rs. 1,40,000
- Remaining 50% of A's share to be paid within one year
Revaluation Loss
- Revaluation Loss = Rs. 10,000
Valuation of Goodwill
- Goodwill of the entire firm = Rs. 1,40,000
Surrender of Joint Life Policy
- Cash obtained from the surrender of the Joint Life Policy = Rs. 80,000
New Profit Sharing Ratio
- B and C share the future profits equally
Total Capital of the Firm
- The total capital of the firm is to be the same as before retirement
Calculation of New Capital Balances
Step 1: Calculation of B and C's Capital Account Balances
- B's Capital Account balance = Rs. 3,00,000
- C's Capital Account balance = Rs. 2,00,000
- B and C's share in JLP Reserve and JLP = Rs. 80,000
- Total Capital of the firm before A's retirement = Rs. 7,00,000
The new profit-sharing ratio is 1:1. Therefore, the new capital balance of B and C will be the same.
- New Capital of B and C = (Total Capital of the firm before A's retirement + A's share - Revaluation Loss - Goodwill) / 2
- New Capital of B and C = (Rs. 7,00,000 + Rs. 1,40,000 - Rs. 10,000 - Rs. 1,40,000) / 2
- New Capital of B and C = Rs. 3,50,000
Therefore, the new Capital Account balance of B and C is Rs. 3,50,000 each.
Step 2: Payment of A's Share
- 50% of A's share = Rs. 1,40,000
- Remaining 50% of A's share to be paid within one year
Therefore, the Capital Account balance of A will be Rs. 1,40,000 immediately after retirement, and the remaining Rs. 1,40,000 will be paid within one year.
Final Capital Account Balances
- A's Capital Account balance = Rs. 1,40,000 immediately after retirement, and Rs. 1,40,000 to be paid within one year
- B's Capital Account balance = Rs. 3,50,000
- C's Capital Account balance = Rs. 3,50,000
Hence, the correct answer is option 'A' - Rs. 3,50,000 each.
Retirement of Partner A
- A's Capital Account balance = Rs. 2,00,000
- A's share in JLP Reserve and JLP = Rs. 80,000
- Total amount due to A = Rs. 2,80,000
Distribution of A's share
- 50% of A's share = Rs. 1,40,000
- Remaining 50% of A's share to be paid within one year
Revaluation Loss
- Revaluation Loss = Rs. 10,000
Valuation of Goodwill
- Goodwill of the entire firm = Rs. 1,40,000
Surrender of Joint Life Policy
- Cash obtained from the surrender of the Joint Life Policy = Rs. 80,000
New Profit Sharing Ratio
- B and C share the future profits equally
Total Capital of the Firm
- The total capital of the firm is to be the same as before retirement
Calculation of New Capital Balances
Step 1: Calculation of B and C's Capital Account Balances
- B's Capital Account balance = Rs. 3,00,000
- C's Capital Account balance = Rs. 2,00,000
- B and C's share in JLP Reserve and JLP = Rs. 80,000
- Total Capital of the firm before A's retirement = Rs. 7,00,000
The new profit-sharing ratio is 1:1. Therefore, the new capital balance of B and C will be the same.
- New Capital of B and C = (Total Capital of the firm before A's retirement + A's share - Revaluation Loss - Goodwill) / 2
- New Capital of B and C = (Rs. 7,00,000 + Rs. 1,40,000 - Rs. 10,000 - Rs. 1,40,000) / 2
- New Capital of B and C = Rs. 3,50,000
Therefore, the new Capital Account balance of B and C is Rs. 3,50,000 each.
Step 2: Payment of A's Share
- 50% of A's share = Rs. 1,40,000
- Remaining 50% of A's share to be paid within one year
Therefore, the Capital Account balance of A will be Rs. 1,40,000 immediately after retirement, and the remaining Rs. 1,40,000 will be paid within one year.
Final Capital Account Balances
- A's Capital Account balance = Rs. 1,40,000 immediately after retirement, and Rs. 1,40,000 to be paid within one year
- B's Capital Account balance = Rs. 3,50,000
- C's Capital Account balance = Rs. 3,50,000
Hence, the correct answer is option 'A' - Rs. 3,50,000 each.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer?
Question Description
Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct 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 Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct 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 Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer?.
Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct 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 Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct 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 Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Balances of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 3,00,000 and C Rs. 2,00,000. JLP Reserveand JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life policy of the partners surrendered and cash obtained Rs. 80,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised.Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balances of Partner’s Capital Accounta)Rs. 3,50,000 eachb)Rs. 3,20,000 each.c)Rs. 1,90,000 each.d)Rs. 1,30,000 each.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup