Practice Test

Balances of M/s A ,B ,C sharing profit and losses in the ratio to their capital stood as follows A- Rs.6,00,000 ; B- Rs.4,00,000 :C- Rs.2,00,000.A decided to retire form the firm & the remaining partners decided to carry on ,JLP of the partners surrendered & cash obtained Rs.1,20,000.What will be the treatment for JLP ?

At the time of retirement of the partner ,firm gets__from the insurance company against the joint life policy for each partners

Balances of R ,H ,K sharing profit and losses in the ratio to their capital stood as follows R- Rs.4,00,000 ; H- Rs.6,00,000 :K- Rs.4,00,000 .JLP reserve Rs.1,60,000 & JLP Rs.1,60,000 R decided to retire form the firm & the remaining partners decided to share future profits equally ,JLP of the partners surrendered & cash obtained Rs.1,60,000.Goodwill of the firm is Rs.2,80,000 & goodwill account is to be raised .revaluation loss was Rs.20,000.amount due to A is to be settled on the following basis 50 % on retirement & the balance 50% within 1 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