Arun and Vijay are partners in a firm sharing profits

42 :- Arun and Vijay are partners in a firm sharing profits & loss in the ratio of 3 : 2.

If the value of machinery in the balance sheet is excess by 33 1/3%, find the value of machinery to be shown in the new balance sheet.

Solution:- Calculation of revalued value of balance sheet
Overvalued amount = 2,00,000 x 100/3 /100 + 100/3 = 2,00,000 x 100/3 / 400/3
= 2,00,000 x 100/400 = 50,000
Therefore, Machinery is overvalued by 50,000
So, correct value of machinery is 2,00,000 – 50,000 = Rs 1,50,000