Sunny and Ujjwal were partners in a firm sharing profits and losses in the ratio of 3:2. On 1st April, 2024, Timmy was admitted as a new partner for a 1/5th share in profits which he acquired equally from Sunny and Ujjwal

Sunny and Ujjwal were partners in a firm sharing profits and losses in the ratio of 3:2. On 1st April, 2024, Timmy was admitted as a new partner for a 1/5th share in profits which he acquired equally from Sunny and Ujjwal. On the date of Timmy’s admission, the Balance Sheet of Sunny and Ujjwal showed investments at ₹ 5,00,000 and a balance of ₹ 2,00,000 in Investment Fluctuation Reserve.

Pass necessary Journal entries for treatment of Investment Fluctuation Reserve on the date of Timmy’s admission in each of the following cases:

(i) Market value of Investments was 5,00,000.
(ii) Market value of Investments was 3,00,000.
(iii) Market value of Investments was 2,00,000.