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:
| Particulars | Book value (₹) | Revalued figure (₹) |
| Machinery | 25,00,000 | 27,00,000 |
| Land | 10,00,000 | 50,00,000 |
| Computers | 2,50,000 | 50,000 |
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:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹24,00,000 and ₹16,00,000
On admission, assets are revalued. An increase in value is a gain and a decrease is a loss; the net gain on revaluation goes to the old partners in the old ratio (3 : 2).
Machinery: ₹27,00,000 − ₹25,00,000 = gain ₹2,00,000
Land: ₹50,00,000 − ₹10,00,000 = gain ₹40,00,000
Computers: ₹50,000 − ₹2,50,000 = loss ₹2,00,000
Net gain = ₹2,00,000 + ₹40,00,000 − ₹2,00,000 = ₹40,00,000
Amrita = ₹40,00,000 × 3/5 = ₹24,00,000
Kalyani = ₹40,00,000 × 2/5 = ₹16,00,000
NCERT (2026-27 edition): |