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

Liabilities Amount    Assets Amount Creditors 40,000 Debtors    18,000   Less: Provision for Doubtful debts 2,000 16,000

Additional information : Debtors Rs. 1,500 will be written off as bad debts and a provision of 5% will be created for bad and doubtful debts. Creditors of Rs. 1,275 not recorded in the books earlier to be taken into account.

Revaluation Gain/Loss will be:

 

A) 950 Gain

B) 950 Loss

C) 1,600 Gain

D) 1,600 Loss