X and Y are partners sharing profits in the ratio of 3 : 2. They decide to share future profits in the ratio of 2 : 3. Investment Fluctuation Reserve of ₹ 50,000
X and Y are partners sharing profits in the ratio of 3 : 2. They decide to share future profits in the ratio of 2 : 3. Investment Fluctuation Reserve of ₹ 50,000 appearing in the Balance Sheet, if no other information is available for change in the value of investments, will be
a) distributed to the partners in the sacrificing ratio
b) distributed to the partners in their old profit-sharing ratio
c) will be shown in the balance sheet of the reconstituted firm
d) distributed between the partners in their new profit-sharing ratio.
Anurag Pathak Changed status to publish April 4, 2024
Ans – b)
Explanation:-
In the absence of any other information, Investment Fluctuation Reserve is distributed among partners in the old profit-sharing ratio.
Anurag Pathak Changed status to publish May 4, 2023
