Balance Sheet of A, B & C as on 31st March, 2025
| Liabilities | Amount | Assets | Amount |
|---|---|---|---|
| Creditors | 11,000 | Buildings | 20,000 |
| Reserve Fund | 6,000 | Machinery | 30,000 |
| A Capital 30,000 | Stock | 10,000 | |
| B Capital 25,000 | Patents | 11,000 | |
| C Capital 15,000 | Debtors | 8,000 | |
| 70,000 | Cash | 8,000 | |
| 87,000 | 87,000 |
C retires and following revaluations took place.
Patents be valued at Rs. 8,000; Machinery at Rs. 28,000; and Buildings at Rs. 25,000.
Find Revaluation Profit/Loss
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → No Profit, No Loss on Revaluation
Only the assets named are revalued; compare each new value with its book value. Creditors, the reserve fund and the other assets do not enter the Revaluation Account.
Patents: Rs. 11,000 to Rs. 8,000 = loss of Rs. 3,000
Machinery: Rs. 30,000 to Rs. 28,000 = loss of Rs. 2,000
Buildings: Rs. 20,000 to Rs. 25,000 = gain of Rs. 5,000
Net result = Rs. 5,000 gain − Rs. 5,000 losses = nil
The two sides of the Revaluation Account are equal, so there is no profit and no loss to share among the partners.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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