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 Amount (Rs.) Machinery 40,000 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 SOLUTION (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 4 5
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