Question

if the market value of investment is Rs 147000, then the share of Mohan, Sohan and Rohan in the investment fluctuation fund will be

(a) 5250,3150,2100
(b) 6750,4050,2700
(c) 5000,5000,3500
(d) None of these ​

Answer 1

Answer:

(c) 5000,5000,3500 is the correct answer

Answer 2

Given: if the market value of the investment is Rs 147000, then the share of Mohan, Sohan and, Rohan

Required: investment fluctuation fund will be

Solution:

There are three partners in the firm.

The investment fluctuation fund will have to be distributed among the three partners as per their ratio of profits and losses.

Since there is no ratio mentioned, we can assume that they are equal partners and that their ratio is 1:1:1.

So the investment fluctuation fund will be debited and the three partners will be credited. The amount of 1,47,000 will be divided into a 1:1:1 ratio.

The journal entry will be like,

Investment fluctuation fund account DR.  1,47,000

   To Mohan's account       49,000

   To Sohan's account        49,000

   To Rohan's account        49,000      

The answer is (d) None of these ​