Practicing Success
The Balance sheet of Himanshu, Pranav and Tushar who were sharing profits in proportion to their capital stood as follows:
Addition Information: On the basis of above case give answer to question: |
Select the treatment of the Investment Fluctuation fund on the admission of Rachit. |
Transfer to credit side of All Partner's Capital A/c Transfer to liability side of New Balance Sheet Transfer to Debt side of Revaluation A/c Transfer to Credit side of Old Partner's Capital A/c |
Transfer to Credit side of Old Partner's Capital A/c |
As there is no fall in market value of investments so the investment fluctuation fund is distributed between old partners in their old ratio. The journal entry for this - |