A and B are partners in the ratio of 2:3.Thier balance sheet shows machienery at 400000,stock at 160000 and debtors at 320000,c is admitted and new profit sharing ratio is agreed at 6:9;5. Machinery is revalued at 340000 and a provition is made for doubful debts @25%. A share in loss on revaluation amount to 20000. Revalued value of stock will be

A and B are partners in the ratio of 2:3.Thier balance sheet shows machienery at 400000,stock at 160000 and debtors at 320000,c is admitted and new profit sharing ratio is agreed at 6:9;5. Machinery is revalued at 340000 and a provition is made for doubful debts @25%. A share in loss on revaluation amount to 20000. Revalued value of stock will be

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 1P

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A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows machineryat Rs. 4,00,000; stock at Rs.80,000 and Debtors at Rs.3,20,000. C is admitted and new profit sharingratio is agreed at 6 : 9 : 5. Machinery is revalued at Rs.3,40,000 and a provision is made for doubtfuldebts @ 2.5%. A’s share in loss on revaluation amounted to Rs.20,000. Revalued value of stock willbe:
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