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.
REVALUATION ACCOUNT
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Computer A/c (Decrease in value of computer) |
2,00,000 | By Machinery A/c (Increase in value of machinery) |
2,00,000 |
| To Profit distributed in old partners | 40,00,000 | By Land A/c (Increase in value of land) |
40,00,000 |
| 42,00,000 | 42,00,000 |
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