Question

7 A and B are partners in a firm sharing profits and losses equally. Their balance sheet showed a machinery of Rs. 100000. If the value of machinery in the balance sheet is undervalued by 20%, find out the value of machinery to be shown in the new balance sheet: A. Rs.125000 B. Rs.75000 C. Rs.120000 D. Rs.80000​

Answer 1

Answer:

d. 80000

Explanation:

becoz depreciation on machinery is said to be 20% so,..

100000 x 20/100 = 80000