Read the following information and answer the question.

A, B & C are partners sharing profits in the ratio of 5:4:1. Their capital accounts showing balance of ₹300000, ₹150000, ₹150000 respectively. It is decided between partners that they will share future profits equally. Firm has the following information-

Creditors- ₹1,10,000
Salary payable- ₹30,000
O/s expenses- ₹10,000
General reserve- ₹40,000
Bank balance- ₹2,10,000
Sundry debtors- ₹1,00,000
Provision for doubtful debts- ₹10,000
Stock -₹50,000
Furniture- ₹40,000
Computers- ₹2,00,000
Vehicle- ₹2,00,000

What will be the revised value of vehicle if it is reduced by 12%?

₹1,76,000

The correct answer is option 1- ₹1,76,000.

Vehicle = 2,00,000
Reduced by 12%
Reduction = 2,00,000 x 12/100
                 = 24,000
Revised value = 2,00,000 -24,000
                       = ₹1,76,000

So, the value of the vehicle after reduction is ₹1,76,000.