Question

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

Balance Sheet (Extract) 

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
		Machinery	40,000

If the value of machinery reflected in the balance sheet is overvalued by 33 1313%, find out the value of Machinery to be shown in the new Balance Sheet: 

(A) ₹ 44,000 

(B) ₹48,000 

(C) ₹ 32,000 

(D) ₹30,000 

Answer 1

Correct option is (D) ₹30,000