Ask your Question we are here to solve that! Ask Now!

Arun and Vijay Are Partners In A Firm Sharing Profits And Losses In The Ratio of 5:1, Machinery Reflected In The Balance Sheet Is Overvalued - Bzziii.com

Arun and Vijay are partners in a firm sharing profits and losses in the ratio of 5:1. Balance Sheet (Extract) Liabilities Amount (Rs.) Assets Amou
bzziii
Arun and Vijay are partners in a firm sharing profits and losses in the ratio of 5:1. 

Balance Sheet (Extract) 

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)
Machinery40,000

If the value of machinery reflected in the balance sheet is overvalued by 33 `1/3`%, find out the value of Machinery to be shown in the new Balance Sheet: 

(A) ₹ 44,000 
(B) ₹48,000 
(C) ₹ 32,000 
(D) ₹30,000 




(D) ₹30,000 

Explanation:


Machinery is overvalued Value by 33 `1/3`% of 40,000

Here, 33 `1/3`% as a fraction

= `\frac{33\frac{1}{3}}{100}`

Converting the mixed fraction to an improper fraction, we get

= `\frac{\frac{100}{3}}{100}` 

= `100/300`

Simplifying this, we get

= `100/300` = `1/3`

= `100/300` of z = 40,000-z


Because, 40,000 is overvalued Value, we will minus the real value from 40,000.

= `"100x"/"300"` + `"300z"/"300"` = 40,000

= `"400z"/"300"` = 40,000

= 40,000 `\times` `300/400` = z

∴ z = 30,000







Getting Info...

Post a Comment

Cookie Consent
We serve cookies on this site to analyze traffic, remember your preferences, and optimize your experience.
Oops!
It seems there is something wrong with your internet connection. Please connect to the internet and start browsing again.
AdBlock Detected!
We have detected that you are using adblocking plugin in your browser.
The revenue we earn by the advertisements is used to manage this website, we request you to whitelist our website in your adblocking plugin.
Site is Blocked
Sorry! This site is not available in your country.