Read the following information and answer the question.

A, B & C are partners sharing profits in the ratio of 2:2:1. At the end of the year, the balance sheet shows the following information-
Capital accounts of partner- A ₹6,00,000, B ₹4,80,000 C ₹4,80,000
General reserve = ₹4,40,000
Workmen compensation reserve = ₹3,60,000
Creditors = ₹2,40,000
Land =  ₹8,00,000
Building = ₹6,00,000
Furniture = ₹2,40,000
Debtors = ₹4,00,000 (including ₹20,000 for provision)
Stock = ₹4,40,000
Cash = ₹1,40,000

The building is to be depreciated by ₹1,00,000. What is the new value of the building?

₹5,00,000

The correct answer is option 2- ₹5,00,000.

Building = ₹6,00,000
Dep = ₹1,00,000
New value = 6,00,000 - 1,00,000
                  = ₹5,00,000

Thus, revalued value is ₹5,00,000.