Question

A and B are partners sharing profits in the
ratio of 3:2. On admission of C for 1/5th
share. Land is appreciated by 10% (Book
Value Rs. 80,000), Building is decreased by
20% (Rs. 2,00,000). Unrecorded Debtors of
Rs. 1,250 are bought in the books and
Creditors of Rs. 2,750 need not be paid. The
Gain (profit) /loss on revaluation will be​

Answer 1

Answer:

it's ₹28, 000 loss

Explanation:

loss on machinery = 2,00,000×20/100= 40,000

less :- gain (1250+2750+8000) = (12,000)

excess of loss over gain = 28,000

A's capital AC.....dr 16,800

B's capital AC.....dr 11,200

to revaluation AC 28,000