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A and B are partners of partnership firm sharing profits in the ratio of 3:2 respectively. C was admitted for 1/5th share of profit. Machinery would be appreciated by 10% (book value Rs.80,000) and building would be depreciate by 20%( Rs.2,00,000). Unrecorded debtors of Rs.1,250 would be brought into books now and a creditor amounting to Rs.2,750 died and need not part anything on this account. What will be profit/loss on revaluation?(A)Loss Rs.28,000 (B) Loss Rs.40,000( C) Profits Rs.28,000 (D) Profits Rs.40,000

Answer»

Correct option is (A)Loss Rs.28,000



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