A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows Machinery at ₹ 2,50,000; Stock at ₹ 1,00,000 and Debtors at ₹ 2,00,000. C is admitted, and a new profit-sharing ratio is agreed at 3 : 4 : 5. Machinery is revalued at ₹ 1,90,000, and a provision is made for doubtful debts @ 5%. A’s share in the loss on revaluation amounts to ₹ 20,000. The revalued value of the Stock will be ______.

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A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows Machinery at ₹ 2,50,000; Stock at ₹ 1,00,000 and Debtors at ₹ 2,00,000. C is admitted, and a new profit-sharing ratio is agreed at 3 : 4 : 5. Machinery is revalued at ₹ 1,90,000, and a provision is made for doubtful debts @ 5%. A’s share in the loss on revaluation amounts to ₹ 20,000. The revalued value of the Stock will be ₹ 1,20,000. Explanation: Calculate the Total Loss on Revaluation: A’s Share of Loss = "Total Loss" xx $\frac{2}{5}$ 20,000 = "Total Loss" xx $\frac{2}{5}$ Total Loss = 20,000 xx $\frac{5}{2}$ = 50,000 Loss on Machinery = 2,50,000 − ₹ 1,90,000 = ₹ 60,000 Loss from Provision for Doubtful Debts = 2,00,000 xx $\frac{5}{100}$ = 10,000 Calculate the Change in Stock Value: Total Loss = Loss on Machinery + Loss on PDD + Change in Stock Value 50,000 = 60,000 + 10,000 + Change in Stock Value 50,000 = 70,000 + Change in Stock Value Change in Stock Value = 50,000 − 70,000 = − 20,000 The negative value indicates a gain in the value of the stock, or a decrease in loss. The stock value increased by ₹ 20,000. Revalued Value of Stock = ₹ 1,00,000 + ₹ 20,000 = ₹ 1,20,000

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