On the date of admission of a partner there was a balance of ₹45,000 in the account of machinery. It was found undervalued by 10%. The value of machine will appear in the new Balance Sheet at:

Correct option is B

On the date of admission of a partner there was a balance of ₹45,000 in the account of machinery. It was found undervalued by 10%. Hence, the actual value must be higher than ₹45000.
The value of machine that will appear in the new Balance Sheet = 45,000×100/90=50,000