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You are Required to answer the following question from the above information 33 to 37. Gagan Nayyar from Sultanpur lodhi (Punjab) and Anurag from Delhi are partners. They share profits equally. During the year, 2020-21 due to Covid-19 Lockdown they faced liquidity crisis and run short of funds. Therefore, on 1st April, 2021 they decided to admit Paras Aggarwal from Mumbai for 1/4th share in the future profits. Balance Sheet (31.3.2021)

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital A/cs:			Land and Building		2,70,000
Gagan	4,35,000		Furniture		1,80,000
Anurag	2,00,000	6,35,000	Machinery		2,00,000
Employees Provident Fund		90,000	Current Investment		1,00,000
Investment Fluctuation Reserve		20,000	Sundry Debtors	80,000	80,000
Workmen Compensation Reserve		1,05,000	Less: Provision for Doubtful debts	(8,000)	72,000
			Cash
					28,000
		8,50,000			8,50,000

On the same date the assets were to be revalued and liabilities were to be reassessed respectively. (i) Land and Building undervalued by 30,000, Furniture is to be Appreciated to 120%, Machinery to be reduced to 80%. Investment revalued at Rs.70,000. (ii) There Were Bad debts of Rs.4,000 written off, Provision for Doubtful debts @ 5% to be made. (iii) Employees Provident fund is to be increased by 10,000 (iv) Workmen Compensation claim is determined at Rs.1,20,000 Calculate the rate by which Land and Building is Undervalued?

A) 15%     

B) 25%

C) 11.11%

D) 10%