Arun and Vimal are partners in the firm sharing profits and losses in the ratio of 4 ∶ 1.
Balance Sheet (Extract)
| Liabilities | Rs. | Assets | Rs. |
| Furniture | 1,20,000 |
If the value of furniture reflected in the balance sheet is undervalued by 40%, find out the value of Furniture to be shown in the Revaluation Account:
1
Credit, Rs. 80,000
2
Debit, Rs. 32,000
3
Debit, Rs. 60,000
4
Credit, Rs. 40,000