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A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.
- a)21,500:21,500:0.
- b)6,500:6,500:0.
- c)14,333:14,333:14,333.
- d)4,333:4,333:4,333.
Correct answer is option 'B'. Can you explain this answer?
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A and B shares profit and losses equally. They admit C as an equal par...
To find the profit/loss on revaluation to be shared among A, B, and C, we need to calculate the increase or decrease in the value of assets and liabilities after revaluation.
Given information:
- Goodwill: Book value = NIL, Revalued value = Rs. 30,000
- Stock: Book value = Rs. 12,000, Revalued value = Rs. 20,000
- Machinery: Book value = Rs. 55,000, Revalued value = Rs. 60,000
Let's calculate the increase or decrease in the value of each asset:
1. Goodwill:
- Increase in value = Rs. 30,000 (Revalued value)
- Decrease in value = Rs. 0 (Book value)
- Profit on revaluation = Increase - Decrease = Rs. 30,000 - Rs. 0 = Rs. 30,000
2. Stock:
- Increase in value = Rs. 8,000 (Revalued value - Book value)
- Decrease in value = Rs. 0 (No change in book value)
- Profit on revaluation = Increase - Decrease = Rs. 8,000 - Rs. 0 = Rs. 8,000
3. Machinery:
- Increase in value = Rs. 5,000 (Revalued value - Book value)
- Decrease in value = Rs. 0 (No change in book value)
- Profit on revaluation = Increase - Decrease = Rs. 5,000 - Rs. 0 = Rs. 5,000
Now, let's calculate the total profit on revaluation:
Total profit on revaluation = Profit on revaluation of Goodwill + Profit on revaluation of Stock + Profit on revaluation of Machinery
= Rs. 30,000 + Rs. 8,000 + Rs. 5,000
= Rs. 43,000
Since A, B, and C share the profit and losses equally, the profit/loss on revaluation will be divided equally among them.
Profit/loss on revaluation to be shared among A, B, and C:
A's share = B's share = C's share = Total profit on revaluation / 3
= Rs. 43,000 / 3
= Rs. 14,333
Therefore, the correct answer is option 'C': 14,333:14,333:14,333.
Given information:
- Goodwill: Book value = NIL, Revalued value = Rs. 30,000
- Stock: Book value = Rs. 12,000, Revalued value = Rs. 20,000
- Machinery: Book value = Rs. 55,000, Revalued value = Rs. 60,000
Let's calculate the increase or decrease in the value of each asset:
1. Goodwill:
- Increase in value = Rs. 30,000 (Revalued value)
- Decrease in value = Rs. 0 (Book value)
- Profit on revaluation = Increase - Decrease = Rs. 30,000 - Rs. 0 = Rs. 30,000
2. Stock:
- Increase in value = Rs. 8,000 (Revalued value - Book value)
- Decrease in value = Rs. 0 (No change in book value)
- Profit on revaluation = Increase - Decrease = Rs. 8,000 - Rs. 0 = Rs. 8,000
3. Machinery:
- Increase in value = Rs. 5,000 (Revalued value - Book value)
- Decrease in value = Rs. 0 (No change in book value)
- Profit on revaluation = Increase - Decrease = Rs. 5,000 - Rs. 0 = Rs. 5,000
Now, let's calculate the total profit on revaluation:
Total profit on revaluation = Profit on revaluation of Goodwill + Profit on revaluation of Stock + Profit on revaluation of Machinery
= Rs. 30,000 + Rs. 8,000 + Rs. 5,000
= Rs. 43,000
Since A, B, and C share the profit and losses equally, the profit/loss on revaluation will be divided equally among them.
Profit/loss on revaluation to be shared among A, B, and C:
A's share = B's share = C's share = Total profit on revaluation / 3
= Rs. 43,000 / 3
= Rs. 14,333
Therefore, the correct answer is option 'C': 14,333:14,333:14,333.
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A and B shares profit and losses equally. They admit C as an equal par...
Because in revalution account there will be no goodwill . So we take only apperciation n depreciation. As the patners are sharing equally . The stock valued is 20000 - 12000 is = 8000 so equally is 4000 for A & 4000 for B and now for machiney it is 60000-55000= 5000 ,AS equally for all patners there will be 2500 for A & 2500 for B so by adding we get 6500 for both the patners and C has 0.
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A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct answer is option 'B'. Can you explain this answer?
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A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct 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 A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct 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 A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct answer is option 'B'. Can you explain this answer?.
A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct 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 A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct 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 A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct answer is option 'B'. Can you explain this answer?.
Solutions for A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct answer is option 'B'. 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 A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.a)21,500:21,500:0.b)6,500:6,500:0.c)14,333:14,333:14,333.d)4,333:4,333:4,333.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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