what was the book value of investment in the balance sheet before the admission of the new partner if investment fluctuation reserve was 40,000 investment market value was 1,00,000 and revolution was debited with investment 10,000
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When book value of investment is greater that it's market value the whole value of investment. Fluctuation reserve will not be transferred to old partners capital a/c . Instead , the reserve amount will be not used to adjust the decline in the value of investment ( book value - Market value. If there is excess amount left in the reserve after adjusting the decline in the value of investments it will be distributed to the old partners in the old ratio
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