Advertisements
Advertisements
Question
Santa and Banta are partners in a firm sharing profits in the ratio of 3 : 2. Kanta was admitted as a new partner for a `1/5`th share of profits. On Kanta’s admission it was decided that machinery would be appreciated by 10% (Book value ₹ 80,000) and Building would be depreciated by 20% (Book value ₹ 2,00,000). Unrecorded Debtors of ₹ 1,250 would be brought to books. There was a liability of ₹ 2,750 included in Sundry Creditors that is not to be paid. What will be the gain/loss on Revaluation?
Options
Loss ₹ 28,000
Loss ₹ 40,000
Profit ₹ 28,000
Profit ₹ 40,000
MCQ
Advertisements
Solution
Loss ₹ 28,000
Explanation:
| Dr. | Revaluation A/c | Cr. | |
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Building A/c | 40,000 | By Machinery A/c | 8,000 |
| By Debtor A/c | 1,250 | ||
| By Creditors A/c | 2,750 | ||
| By Loss on Revaluation A/c | 28,000 | ||
| 40,000 | 40,000 | ||
shaalaa.com
Is there an error in this question or solution?
