Question

Nita, Vidur and Mita were partners in a firm sharing profits and losses in the ratio of 3 : 4 : 1. On 1st April 2024, they decided to admit Samir as a new partner. The new profit-sharing ratio between Nita, Vidur, Mita, and Samir will now be 1 : 1 : 1 : 1. The balance sheet of Nita, Vidur, and Mita before Samir’s admission showed machinery at ₹ 6,00,000. On the date of admission, it was found that the machinery is overvalued by 20%. The value of machinery shown in the new Balance Sheet after Samir’s admission will be:

Options

• ₹ 7,50,000

• ₹ 4,80,000

• ₹ 7,20,000

• ₹ 5,00,000

Answer 1

₹ 5,00,000

Explanation:

Value of machinery in new balance sheet = `6,00,000 xx 100/120`

= ₹ 5,00,000