Ram and Shyam are partners sharing profits/losses equally. They admitted Radha into partnership for 1/3rd share. At the time of her admission, the book value of Machinery was Rs. 1,35,000.
It was provided at the time of admission that the Machinery was undervalued by 10% Show its impact on Revaluation A/c ?
1
Revaluation A/c is debited by Rs. 15,000
2
Revaluation A/c is debited by Rs. 13,500
3
Revaluation A/c is credited by Rs. 15,000
4
Revaluation A/c is credited by Rs. 13,500