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X and Y are partners sharing profits equally. They admit Z for 1/3rd share in profits. Following information is available at the time of admission of Z.

Liabilities  Amount Assets Amount Machinery 2,75,000 Furniture 51,000

Additional information: Machinery was overvalued by 10% and Furniture was undervalued by 15%.

Revaluation Gain/Loss will be:

A) Gain 19,850        

B) Loss 19,850

C) Gain 16,000      

D) Loss 16,000