Question

x, y and z are partners sharing P & L in ratio of 5:3; 2, decide to share future P & L in the ratio of
2: 3:5 with effect fam 1" April 2002. an extract of their Balance Sheet as on 31-3-2002 is as
follows:
Liabilities
Rs
Assets Rs
Investment fluctuation
Reserve
1500 Investment 20000
(at cost )
Show the accounting treatment in each of the following cases:
(a) If no other information is given.
(b) If market value of investment is Rs 20000.
(c) If market value of investment is Rs 19000.if market value of investment is Rs 18000.
(d) If market value of investment is Rs 20500.

Answer 1

Explanation:

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