Question

Suman and Tanya were partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1^st April, 2025, they decided to share the profits equally. On that date, furniture was appearing in the books of the firm at ₹ 4,50,000. At the time of the change in the profit-sharing ratio, it was found to be undervalued by 10%. In the new balance sheet, furniture will be shown at ______.

पर्याय

• ₹ 4,05,000

• ₹ 4,50,000

• ₹ 4,95,000

• ₹ 5,00,000

Answer 1

Suman and Tanya were partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1^st April, 2025, they decided to share the profits equally. On that date, furniture was appearing in the books of the firm at ₹ 4,50,000. At the time of the change in the profit-sharing ratio, it was found to be undervalued by 10%. In the new balance sheet, furniture will be shown at ₹ 5,00,000.

Explanation:

The current book value (₹ 4,50,000) is 10% less than the actual value. In other words, ₹ 4,50,000 represents only 90% of the true value.

Calculate the actual value (100%):

Actual value = `"Book value"/(% "it represents") xx 100`

Actual value = `(4,50,000)/90 xx 100`

= 5,00,000