question_answer

X and Y are sharing profits in the ratio of 5:3. They admit Z as a new partner. At the time of admission following information is available. Balance sheet (Extract)

Liabilities	Amount	Assets		Amount
		Furniture		20,000
		Debtors	50,000
		(-) Provision for doubtful debt	5,000	45,000
		Stock		10,000

Match the following:

1.	All debtors are good; Stock is overvalued by 3000; Furniture brought upto 150%	(A)	Revaluation Profit = 6000
2.	All debtors are good; Stock is overvalued by 3000; Furniture increased to 24000	(B)	Revaluation Profit = 26000
3.	All debtors are good; Stock is undervalued by 3000; Furniture brought upto 150%	(C)	Revaluation Profit = 12000
4.	All debtors are good; Stock is overvalued by 3000; Furniture increased by 24000	(D)	Revaluation Profit = 18000

A) 1-[B]; 2-[C]; 3-[D]; 4-[A]

B) 1-[B]; 2-[C]; 3-[A]; 4-[D]

C) 1-[C]; 2-[A]; 3-[D]; 4-[B]

D) 1-[C]; 2-[D]; 3-[A]; 4-[B]