Ram and Balram are partners in a firm sharing profit and losses in the ratio of 2:1 .An extract of Balance Sheet as of 31st March 2022: ![image](https://pub-7faa453bd1ec4bf0a04cc031c6f058de.r2.dev/images/f36f0a01-c1ea-4dbe-aa03-18d4050e94d6.png) If the value of the above furniture is overvalued by 3

Let the true (book) value of the furniture be X .The given book value is overvalued by 331/3\% , which means: 331/3\% = 100/3\% = 1/3 Therefore, the current book value represents (1 + 1/3) = 4/3 of the true value. 4/3 × X = 80,000 X = 80,000 × 3/4 X = 20,000 × 3 = 60,000 Thus, the value of furniture to be shown in the new Balance Sheet is Rs. 60,000.

Ram and Balram are partners in a firm sharing profit and losses in the ratio of 2:1 .An extract of Balance Sheet as of 31st March 2022: ![image](https - Accountancy MCQ CUET Accountancy 2022 15 July Shift 2 2026 | ExamTest.live

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Ram and Balram are partners in a firm sharing profit and losses in the ratio of 2 : 1 .An extract of Balance Sheet as of 31st March 2022: If the value of the above furniture is overvalued by 33 \frac{1}{3} %, choose the value of furniture to be shown in the new Balance Sheet out of the following:

A $Rs. 1,06,667$
B $Rs. 60,000$
C $Rs. 1,00,000$
D $Rs. 26,667$

Solution & Step-by-step Explanation

Let the true (book) value of the furniture be X .The given book value is overvalued by 33 \frac{1}{3} %, which means: 33 \frac{1}{3} % = \frac{100}{3} % = \frac{1}{3} Therefore, the current book value represents (1 + \frac{1}{3}) = \frac{4}{3} of the true value. \frac{4}{3} \times X = 80, 000 X = 80, 000 \times \frac{3}{4} X = 20, 000 \times 3 = 60, 000 Thus, the value of furniture to be shown in the new Balance Sheet is Rs. 60,000.

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Ram and Balram are partners in a firm sharing profit and losses in the ratio of 2 : 1 .An extract of Balance Sheet as of 31st March 2022: If the value of the above furniture is overvalued by 33 \frac{1}{3} %, choose the value of furniture to be shown in the new Balance Sheet out of the following:

Rs. 1,06,667

Rs. 60,000

Rs. 1,00,000

Rs. 26,667

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Ram and Balram are partners in a firm sharing profit and losses in the ratio of 2:1.An extract of Balance Sheet as of 31st March 2022:If the value of the above furniture is overvalued by 3331​%, choose the value of furniture to be shown in the new Balance Sheet out of the following:

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