Question

X and Y are partners sharing profits in the ratio of 7:3. They admit K as a new partner for 1/6th share. At the time of admission of the following situation was found: Stock given in Balance Sheet Rs. 55,000, Some part of the goods costing Rs.8,000 has been badly damaged and only 10% is realised Furniture was undervalued by 20% (Given book value of Furniture is Rs.28,800) Y's share in Gain/Loss on Revaluation will be (a) Nil (b) 240 Loss (b) 432 Loss (d) 672 Loss​

Answer 1

Answer:

(a) nil is the correct answer as there will be no loss in this question