Based on following, answer the question.

Amrita and Kalyani are partners sharing profits in the ratio of 3:2. They decided to expand the business by admitting Suraj as new partner for 1/4th share. Suraj's share of goodwill is valued at ₹90,000 for which he compensated Amrita and Kalyani in the ratio of 1:4. Following information is also provided:

 Workmen Compensation Fund  ₹5,00,000. Claim against workmen compensation is ₹2,00,000 and goodwill appeared in the books at ₹60,000.

Share of revaluation profit of Amrita and Kalyani is:

₹24,00,000 and ₹16,00,000

The correct answer is option 1- ₹24,00,000 and ₹16,00,000.

REVALUATION ACCOUNT

Amrita and Kalyani share this revaluation profits in the ratio of 3:2.

Amrita share = 40,00,000 x 3/5
                     = ₹24,00,000

Kalyani share = 40,00,000 x 2/5
                     = ₹16,00,000