Question

At the time of retirement, amount remaining in Investment Fluctuation Reserve after meeting the fall in value of Investment is credited to capital a/c: *​

Answer 1

Answer:

in all partners capital account

Answer 2

"The old Partners Capital Accounts"

Explanation:-

At the time of retirement, if Investment Fluctuation Reserve appear in the Balance sheet, then it's treatment will be:-

The amount of IFR is transferred to Old partner’s Capital or Current Accounts in their old profit sharing ratio.

Journal Treatment would be:-

Investment Fluctuation Reserve A/c Dr.

To Old Partner’s Capital/ Current A/c (In Old Ratio)