CUET CUET Accountancy 2024 - On the date of admission of a partner there was a balance of ₹ 45,000 in the account of machinery. It was found undervalued by 10%. The value of machinery will appear in the new Balance Sheet at: | PYQs + Solutions

CUET Accountancy 2024

Accountancy

Admission of a Partner

Medium

On the date of admission of a partner there was a balance of ₹ 45,000 in the account of machinery. It was found undervalued by 10%. The value of machinery will appear in the new Balance Sheet at:

₹ 49,500

₹ 50,000

₹ 40,000

₹ 40,500

Correct Option: 2

On admission of a partner, machinery was valued at ₹ 45,000 but was undervalued by 10%.

To find the correct value, we calculate the undervalued amount:

Undervaluation = 10% of ₹ 45,000

\newline

0.10 \times 45,000 = 4,500

Now, add this to the original value:

Correct value = ₹ 45,000 + ₹ 4,500

\newline

45,000 + 4,500 = 49,500

However, the question asks for the value that will appear in the new Balance Sheet. Since the machinery was undervalued, we need to adjust it to its true value.

True value = ₹ 45,000 / (1 - 0.10)

\newline

45,000 / 0.90 = 50,000

So, the value of machinery will appear in the new Balance Sheet at:

₹ 50,000

Correct answer: Option 2.

CUET Accountancy 2024 PYQs

On the date of admission of a partner there was a balance of ₹ 45,000 in the account of machinery. It was found undervalued by 10%. The value of machinery will appear in the new Balance Sheet at:

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