In a partnership firm, if the value of land has to be brought up to 120% of its book value (₹60,000), then what is the current value of land?
Answer & explanation
Correct answer: option 3
The correct answer is option 3 i.e. ₹72,000.
Book value = ₹60,000
Current value = 60,000 x 120/100
= ₹72,000