Question

A and B are partners sharing profit in the ratio of 2:3. Their balance sheet shows Machinery at
Rs. 2,00,000; Stock at Rs. 80.000 and Debtors at Rs. 1,60,000. C is admitted and new profit
sharing ratio is agreed at 6:9:5. Machinery is revalued at Rs. 1,40,000 and a provision is made
for doubtful debts @ 59 A's share in loss on rcvaluation amount to Rs. 20.000. Revalued value
of stock will be
a) Rs. 62.000
b) Rs. 1.00.000 c) Rs. 60.000 d) Rs. 98,000​

Answer 1

"a) Rs. 98000"

Explanation:

     Revaluation a/c    dr              68000

      to machinery a/c                               60000

      to provision                                        8000

    Loss on revaluation a/c   dr   50000

      to A a/c                                             20000

      To B a/c                                            30000

Therefore,

        Revalued stock = 68000 - 50000 = 18000

      i.e;  80000 + 18000 = 98000