A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows Machinery at Rs2,00,000; Stock at Rs80,000 and Debtors at Rs1,60,000. C is admitted and new profit sharing ratio is agreed at 6 : 9 : 5. Machinery is revalued at Rs1,40,000 and a provision is made for doubtful debts @5%. A's share in loss on revaluation amount to Rs20,000. what will be the revalued value of Stock?

₹62000 ₹100000 ₹60000 ₹98000

₹98000

Revaluation a/c Dr 68000 To machinery a/c 60000 To provision 8000 Loss on revaluation a/c dr 50000 To A' capital a/c 20000 To B a/c 30000 Therefore, Revalued stock = 68000 - 50000 = 18000 i.e; 80000 + 18000 = 98000