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
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







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