Question

1
6 Arun and Vijay are partners in a firm sharing profits and losses in the ratio of 5:1.
Balance Sheet (Extract)
Liabilities
Assets
Machinery
40,000
If value of machinery in the balance sheet is undervalued by 20%, then at what value will machinery
be shown in
new balance sheet:
(a) 44,000 (b) *48,000 (c) '32,000 (d) 50,000​

Answer 1

Answer:

d) 50,000

Explanation:

if we look at it 40000 is actually 80% of some value thats why it is undervalued at 20%

so we can write it as,

40000 = (ACTUAL VALUE) × 80/100

which will give us 50,000

HOPE YOU UNDERSTOOD :)

Answer 2

Answer:

The Correct option is D i.e., 50,000

Explanation:

As per question,

the value of machinery is shown on balance sheet

₹ 40,000 which is undervalued by 20%

To determine the actual value of machinery, we consider actual value be X.

X - $\frac{20}{100} X$ = ₹ 40,000

By taking LCM

$\frac{100 X-20X}{100}$ = ₹ 40,000

$\frac{80 X}{100}$ = ₹ 40,000

X = $\frac{40000 * 100}{80}$

X= ₹ 50,000

Hence the value of Machinery be shown in New Balance Sheet = ₹ 50,000

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