question_answer

P, Q and R sharing profits in the ratio of 3:2:1. They decided to change their profit sharing ratio to 2:2:1 from 1st April 2021. On that date:

Liabilities                             Amount Assets Amount                                    Debtors 60,000

Additional information:

Bad Debts Rs. 6,000 were to be written off and a provision of Rs.3,000 was to be made for bad and doubtful debts.

What will be the Revaluation Profit/Loss?

A) Profit Rs.6,000

B) Loss Rs.6,000

C) Profit Rs.9,000

D) Loss Rs.9,000