wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A and B share profits and losses in the ratio of 3/5 and 2/5 respectively and having capital account balances of Rs 1,00,000 each. At the time of revaluation, the firm’s total book value of assets was Rs 60,000 while they can only be sold for Rs 40,000. Which of the following is the balance of A’s capital account after revaluation of firm’s assets?


A

Rs 72,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
B

Rs 88,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C

Rs 1,12,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

Rs 1,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B

Rs 88,000


A`s capital before revaluation = Rs. 1,00,000

Revaluation loss = Rs. 60,000 - Rs. 40,000 = Rs. 20,000

A`s share in loss= Rs. 20,000 X 3/5 = Rs. 12,000

New capital = Rs. 1,00,000 - Rs. 12,000 = Rs. 88,000


flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Accounting Treatment
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon