Accountancy, asked by rushilgaba98, 29 days ago

Ramesh, Sumesh and Girish sharing profits and losses in the ratio of 4:3:2, decided to admit Manish as a new partner with effect from 1st April, 2021. Their Balance Sheet as at 31st March showing an investment of 2,00,000 and Investment Fluctuation Reserve18,000.If the market value of investment is 1,91,000, What would be the accounting treatment?
a. 9,000 can distribute among partners and debit to their capital account.
b. 18,000 can distribute among partners and credit to their capital account.
c. 9,000 should transferred to Investment account
d. 18,000 should show in the Reconstituted firms’ Balance sheet​

Answers

Answered by Sidmaths
0

Answer:

9,000 should transferred to Investment account

Explanation:

investment fluctuation reserve is made to meet it any reduction in the invested amount in this case the investment is less by 9000 so 9000 will be taken out from the the investment fluctuation reserve and will be credited in the investment account remaining 9000 in the investment fluctuation reserve will be distributed among the partners in their profit sharing ratio

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