Question

A and B are partners sharing profits in the ratio of 2:3.Their balance sheet shows Machinery at 20,000 ; 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 is revalue at ₹1,40,000 and a provision is made for doubtful debts @5%. A's share in loss on revalutuon amount to ₹ 20,000. Revalued value of stock will be​

Answer 1

Answer:

98,000

• Explanation

A's loss= 20,000

If total loss of the firm is 'x' , then

X × 2/5= 20,000

= x = 50,000

Dr                                                                                                                   Cr

PARTICULARS               AMT                     PARTICULARS            AMT

To Stock                       18,000                  By Machinery             60,000

To Loss                          50,000                By Provision for dd      8,000

Therefore the stock has increased by 18,000

Revalued value of stock = 80,000+18,000= 98,000