On 31st March 2017, the Balance Sheet of Abhir and Divya, who were sharing profits in the ratio of 3 : 1 was as follows:
On 31st March 2017, the Balance Sheet of Abhir and Divya, who were sharing profits in the ratio of 3 : 1 was as follows:
| Liabilities | ₹ | Assets |  | ₹ | |
| Creditors
Employee’s Provident Fund Investment Fluctuation Reserve General Reserve Capitals: Abhir Divya |
6,00,000 4,00,000
|
2,20,000 1,00,000 1,00,000 1,20,000
10,00,000 |
Cash at Bank
Debtors Stock Investments (Market Value ₹ 4,40,000) |
6,50,000
|
1,40,000 6,00,000 3,00,000 5,00,000 |
| 15,40,000 | Â 15,40,000 |
They decided to admit Vibhor on 1st April, 2017 for 1/5th share.
a) Vibhor shall bring ₹ 80,000 as his share of goodwill premium
b) Stock was overvalued by ₹ 20,000.
c) A debtor whose dues of ₹ 5,000 were written off as bad debts, paid ₹ 4,000 in full settlement.
d) Two months’ salary @ ₹ 6,000 per month was outstanding.
e) Vibhor was to bring in capital to the extent of 1/5th of the total capital of the new firm.
Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the reconstituted firm.
Anurag Pathak Changed status to publish May 25, 2023
There is a fluctuation of ₹ 60,000 in investments. It is adjusted from Investment Fluctuation Reserve. 1,00,000 – 60,000 = ₹ 40,000.
How investment fluctuation fund came 40,000 in partners capital account?