Comprehension Passage
Following is the Balance Sheet of A and B who share profits in the ratio of 3:2.
Balance Sheet of A and B as on April 1, 2015
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|---|---|---|
| Sundry Creditors | 20,000 | Cash in Hand | 3,000 |
| Capitals: | Debtors | 12,000 | |
| A 30,000 | Stock | 15,000 | |
| B 20,000 | 50,000 | Furniture | 10,000 |
| Plant and Machinery | 30,000 | ||
| Total | 70,000 | Total | 70,000 |
On that date C is admitted into the partnership on the following terms:
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C is to bring in Rs. 15,000 as capital and Rs. 5,000 as premium for goodwill for share.
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The value of stock is reduced by 10% while plant and machinery is appreciated by 10%.
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Furniture is revalued at Rs. 9,000.
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A provision for doubtful debts is to be created on sundry debtors at 5% and Rs. 200 is to be provided for an electricity bill.
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Investment worth Rs. 1,000 (not mentioned in the balance sheet) is to be taken into account.
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A creditor of Rs. 100 is not likely to claim his money and is to be written off.
What will be the revised value of the stock after the adjustment?
1
Rs. 13,500
2
Rs. 15,000
3
Rs. 16,500
4
Rs. 12,000