question_answer

X and Y are Sharing profits in the ratio of 3:2. They admit Z as a new partner. At the time of admission, the following information is available: Balance sheet (Extract)

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

Match the followings:

1.	All debtors are good and provision for doubtful debts no longer needed	(A)	Revaluation Profit = 1000
2.	Provision for doubtful debts was found in excess by Rs. 2000	(B)	Revaluation Profit = 5000
3.	Provision for doubtful debts reduced to Rs. 4000	(C)	Revaluation Profit = 2000
4.	Provision for doubtful debts increased to Rs. 6000	(D)	Revaluation Loss = 1000

 

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]