In a partnership firm, if the value of l

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

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?

Options:

₹50,000

₹60,000

₹72,000

₹48,000

Correct Answer:

₹72,000

Explanation:

The correct answer is option 3 i.e. ₹72,000.

Book value = ₹60,000
Current value = 60,000 x 120/100
= ₹72,000