In accordance with Lenz's law, any induced current will act to counteract the change in magnetic flux within a loop.
Manav and Namit were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March 2024 was as follows:
Liabilities | Assets | ||
---|---|---|---|
Capitals: | Machinery | ₹8,00,000 | |
Manav | ₹4,00,000 | Investments | ₹5,00,000 |
Namit | ₹6,00,000 | Debtors | ₹12,00,000 |
Bank Overdraft | ₹9,00,000 | Stock | ₹3,00,000 |
Creditors | ₹10,00,000 | Cash in Hand | ₹1,00,000 |
Total | ₹29,00,000 | Total | ₹29,00,000 |
The firm was dissolved on the above date and the following transactions took place:
[(i)] Stock was given to creditors in full settlement of their account.
[(ii)] Investments were taken over by Manav at 120% of book value.
[(iii)] Bad debts amounted to ₹ 2,00,000.
[(iv)] Machinery was realised at 50% discount.
[(v)] Realisation expenses amounted to ₹ 1,00,000 which were paid by Namit.
Prepare Realisation Account.
Lenz’s law states that the induced electromotive force with different polarities induces a current whose magnetic field opposes the change in magnetic flux through the loop in order to ensure that original flux is maintained through the loop when current flows in it.
It depends on the principle of conservation of energy and Newton’s third law. To determine the direction of the induced current is most convenient method . Induced current states that he direction of an induced current is always such as to oppose the change in the circuit or the magnetic field that produces it.
The Lenz’s Law is reflected in the formula of Faraday’s law. Here the negative sign is contributed from Lenz’s law. The expression is –
Where,