Nithya, Sathya and Mithya were partners sharing profits and losses in the ratio of 5:3:2. Mithya dies on August 1, 2025. On this date, the Patents are to be valued at Rs.8,000 (Book Value Rs. 6,000), Machinery at Rs.25,000 (Book Value Rs. 30,000) and Premises at Rs.25,000 (Book Value Rs. 20,000). The Result of the revaluation will be:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Net Gain Rs. 2,000
On the death of a partner the assets are revalued. A rise in value is a gain and a fall is a loss; the net result of the Revaluation Account is shared by all the partners in the old ratio.
Patents: Rs. 8,000 − Rs. 6,000 = Rs. 2,000 gain
Machinery: Rs. 25,000 − Rs. 30,000 = Rs. 5,000 loss
Premises: Rs. 25,000 − Rs. 20,000 = Rs. 5,000 gain
Net result = Rs. 2,000 + Rs. 5,000 − Rs. 5,000 = Rs. 2,000 gain
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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