Question

Firms and co Q. 1. On admission of a partner, it was found that (1) Land & Building is undervalued by 20% (Book value 34,00,000). (ii) Stock is overvalued by 25% (Book value 3,00,000) Profit or Loss on Revaluation will be : (A) Profit 35,000 (B) Loss 5,000 (C) Loss 40,000 (D) Profit 340,000​

Answer 1

Answer:

Revaluation account

loss. gain

stock. 50000. land & building 85000

profit. 35000

option A is correct