Differentiate between:
Donor region and Recipient region.
Differentiate between:
Donor region and Recipient region.
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Solution and Explanation
Donor region: A donor region is one that exports or supplies resources, labor, or goods to other regions. These regions typically have a surplus of certain resources that can be distributed.
Recipient region: A recipient region is one that receives resources, labor, or goods from other areas. These regions often lack sufficient resources to meet their demands and rely on external supplies.
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\[\begin{array}{|l|r|l|r|} \hline \text{Liabilities} & \text{Amount (₹)} & \text{Assets} & \text{Amount (₹)} \\ \hline \text{Capital Account:} & & \text{Stock} & 17{,}000 \\ \text{Mahendra} & 23{,}000 & \text{Furniture} & 18{,}000 \\ \text{Surendra} & 15{,}000 & \text{Land and Building} & 16{,}000 \\ \text{Narendra} & 12{,}000 & \text{Bank} & 37{,}000 \\ \text{Bills Payable} & 2{,}000 & & \\ \text{Creditors} & 8{,}000 & & \\ \text{Bank Loan} & 12{,}000 & & \\ \text{General Reserve} & 16{,}000 & & \\ \hline \text{Total} & 88{,}000 & \text{Total} & 88{,}000 \\ \hline \end{array}\]
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\[\begin{array}{rl} \bullet & \text{Stock, furniture, land and building are to be revalued at ₹ 16,700, ₹ 16,200 and ₹ 30,100 respectively.} \\ \bullet & \text{Narendra's share in goodwill is to be valued from the firm's goodwill, which was valued at 3 times the average profit of the last four years. The profits for the last four years were:} \\ & \quad \bullet \ \text{I year – ₹ 30,000} \\ & \quad \bullet \ \text{II year – ₹ 25,000} \\ & \quad \bullet \ \text{III year – ₹ 25,000} \\ & \quad \bullet \ \text{IV year – ₹ 40,000} \\ \bullet & \text{His profit up to the death is to be calculated on the basis of the profit of last year.} \\ \bullet & \text{Narendra was entitled to get a salary of ₹ 1,200 per month.} \\ \bullet & \text{Interest on capital at 10\% p.a. to be allowed.} \\ \bullet & \text{Narendra's drawing up to the date of his death was ₹ 900 per month.} \end{array}\]
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