On admission, old partners reduce furniture from ₹80,000 to ₹68,000, and on the same date an unrecorded piece of furniture worth ₹9,500 is found. What is the total effect from furniture?

Correct answer: ₹2,500 हानि

The governing concept is that every change in the value or existence of an asset is considered in Revaluation Account. The recorded furniture falls from ₹80,000 to ₹68,000, creating a loss of ₹12,000. At the same time, the previously unrecorded furniture is an asset discovered during reconstitution, so it creates a gain of ₹9,500 and is debited to Furniture Account while Revaluation Account is credited. The net effect is ₹12,000 loss − ₹9,500 gain = ₹2,500 net loss. Therefore option A is correct. Option C ignores the newly discovered asset, option B ignores the reduction, and option D incorrectly adds both amounts as losses.