Question

A and B are partners sharing profits in the ratio 2:3. Their balance sheet shows Machinery at 2,00,000; Stock at 80,000 and Debtors at 1,60,000. C is admitted and new profit sharing ratio is agreed at 6:9:5. Machinery revalued at 1,40,000 and a provision is made for doubtful debts @ 5%. A’s share in loss on revaluation amount to 20,000. Revalued value of stock will be:
62,000 (b) 1,00,000 (c) 60,000 (d) 98,000​

Answer 1

Option D) 98,000

Refer The attachment For the Explanation

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Answer 2

"(d) 98,000​"

Explanation:

A's share in loss on revaluation = 20000

therefore Total loss on revaluation = 20000 x 5/2 = 50000

B's share in loss on revaluation = 50000 x 3/5 = 30000

Revalued stock = 60000+8000 - 50000 = 18000

i.e Stock value was appreciated by 98000