A and B are partners sharing profits in the ratio of 2 : 1. Their Balance Sheet shows Machinery at ₹ 3,00,000; Stock at ₹ 80,000 and Debtors at ₹ 1,60,000. C is admitted, and a new profit-sharing ratio is agreed at 6 : 9 : 5. Machinery is revalued at ₹ 2,40,000, 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 : 1. Their Balance Sheet shows Machinery at ₹ 3,00,000; Stock at ₹ 80,000, and Debtors at ₹ 1,60,000. C is admitted, and a new profit-sharing ratio is agreed at 6 : 9 : 5. Machinery is revalued at ₹ 2,40,000, 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 ₹ 1,18,000. Explanation: A’s share of loss on Revaluation = ₹ 20,000 Total Loss on Revaluation = 20,000 xx $\frac{3}{2}$ = ₹ 30,000 Loss on Revaluation of Machinery = 60,000 Provision for Doubtful Debts = 1,60,000 xx $\frac{5}{100}$ = 8,000 = 60,000 + 8,000 = 68,000 Since net loss on revaluation is ₹ 30,000, the Increase in the value of stock must be: = 68 000 − 30 000 = ₹ 38 000 Revalued Value of Stock = 80,000 + 38,000 = ₹ 1,18,000

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