P and Q are partners in a firm. They admitted R for 1/4th share in profits. The book value of machinery as on the date of admission was ₹ 7,00,000. There was an unrecorded machine of ₹ 40,000, which was brought into the books, and a damaged machine of book value of ₹ 25,000 is to be written off. 20% is to be reduced from the value of the machine. The revalued amount of the machine will be ______.

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P and Q are partners in a firm. They admitted R for $\frac{1}{4}$th share in profits. The book value of machinery as on the date of admission was ₹ 7,00,000. There was an unrecorded machine of ₹ 40,000, which was brought into the books, and a damaged machine of book value of ₹ 25,000 is to be written off. 20% is to be reduced from the value of the machine. The revalued amount of the machine will be ₹ 5,72,000. Explanation: Adjusted Book Value of Machinery = 7,00,000 + 40,000 − 25,000 = 7,15,000 20% is to be reduced from the value of the machine. This 20% reduction is applied to the adjusted book value Reduction Amount = 7,15,000 xx $\frac{20}{100}$ = 1,43,000 Revalued Amount = Adjusted Book Value − Reduction Amount = 7,15,000 − 1,43,000 = 5,72,000

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