(i) On the date of Som’s admission as a partner, it is decided that:
• Furniture (book value ₹ 2,50,000) be reduced by 40%
• Machinery (book value ₹ 1,50,000) be reduced to 40%
What is the net decrease in the value of the assets?

(a) ₹ 2,10,000
(b) ₹ 1,90,000
(c) ₹ 1,60,000
(d) ₹ 2,40,000

Solution