A, B and C are partners sharing profits in equal ratio. Capital balances on 1st July, 2014 are A - Rs. 20,000, B - Rs. 10,000 and C - Rs. 10,000. Their private properties are : A - 15,000, B - Rs. 7,000 and C - 1,500. What is the extent of their liability in the firm ?

A - Rs. 40,000; B - Rs. 30,000; C - Rs. 20,000

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A - Rs. 15,000; B - Rs. 22,000; C - Rs. 20,000. Their private properties are: A - Rs. 1,5000, B - Rs. 7000 and C - Rs. 7,000 and C - Rs. 1,500.

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A - Rs. 35,000; B - Rs. 17,000; C - Rs. 11,500

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Solution

The correct option is C A - Rs. 35,000; B - Rs. 17,000; C - Rs. 11,500
Partners of typical partnership firms have unlimited liability towards their collective debts and legal consequences. This means that their own assets are liable for attachment for meeting the firm's debts and liabilities.

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Similar questions

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PRACTICAL PROBLEM

Pai, Amba and Manoj are partners in a firm sharing profit and losses in the proportion to their capitals. Their Balance Sheet as on 31.3.2012 is as follow:

Balance Sheet as on 31^st March, 2012
Liabilities	Amount Rs	Assets	Amount Rs
Capitals		Cash	3,000
Pai	30,000	Stock	12,000
Amba	30,000	Debtors	20,000
Manoj	15,000	Plant	13,000
Creditors	7,000	Building	20,000
Outstanding Expenses	15,000	Motor Van	31,000
Profit and Loss A/c	20,000	Goodwill	18,000
	1,17,000		1,17,000

On the above date Pai retired and the following adjustments have been agreed upon

1) Goodwill was revalued at Rs 15,000

2) Assets and Liabilities were revalued as under debtors Rs 17,000 stock at 90% of book value Building Rs 35,000 Plant Rs 11,500 Motor Van Rs 29, 500, Outstanding expenses Rs 18,000

3) Amba and Manoj contributed additional capital of Rs 20,000 and Rs 10,000 respectively

4) Balance due to Mr. Pai is transferred to his loan account after paying him Rs 1,000/-

Prepare:- Profit and Loss adjustment A/c,. Partner’s Capital A/c’s and Balance Sheet of new firm

Q. Ram & Rahim partners sharing profits & losses in the ratio of their effective capital. They had Rs. 2,00,000 and Rs 1,20,000 respectively in their capital accounts as on 1st January, 2012. Ram introduced a further capital if Rs 20,000 on 1st April, 2012 and another Rs 10,000 on 1st July, 2012. On 30th September, 2012 Ram withdrew Rs 80,000. On 1st July, 2012, Rahim introduced further capital of Rs 60,000. Calculate the profit sharing ratio of Ram & Rahim.

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A, B and C are partners sharing profits in equal ratio. Capital balances on 1st July, 2014 are A - Rs. 20,000, B - Rs. 10,000 and C - Rs. 10,000. Their private properties are : A - 15,000, B - Rs. 7,000 and C - 1,500. What is the extent of their liability in the firm ?

The correct option is C A - Rs. 35,000; B - Rs. 17,000; C - Rs. 11,500Partners of typical partnership firms have unlimited liability towards their collective debts and legal consequences. This means that their own assets are liable for attachment for meeting the firm's debts and liabilities.

The correct option is C A - Rs. 35,000; B - Rs. 17,000; C - Rs. 11,500
Partners of typical partnership firms have unlimited liability towards their collective debts and legal consequences. This means that their own assets are liable for attachment for meeting the firm's debts and liabilities.