Question

Arun and Vijay are partners in a firm sharing profits and losses in the ratio of 5:1.

Balance Sheet (Extract)

Liabilities	Rs.	Assets	Rs.
		Machinery	40,000

If value of machinery in the balance sheet is undervalued by 20%, then at what value will machinery be shown in new balance sheet: 

(a) Rs. 44,000 

(b) Rs. 48,000 

(c) Rs. 32,000 

(d) Rs. 50,000

Comments

50000 how's

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x - 20% of x = 40000

Answer 1

Answer: (d) Rs. 50,000

Answer 2

(b) 48000

40000*20%=8000

hence, undervalue=40000+8000=>48000

Answer 3

Balance sheet amount would be..(working note)

Asset side:-

Machinery                 ₹ 40000

Add: 40000×20/100 =  ₹8000

     Total                          =  48000

  Note=only show total amount in balance sheet...