Following is the balance sheet of A, B, and C who share profits and losses of the business in the ratio of 3:2:1.

Additional Information:
a. On 1st April, 2021, they admitted D as a partner for 1/4th for which he brought ₹1,20,000 as his capital and ₹30,000 as a share of goodwill.
b.The value of furniture has increased by 10%.
c. Market value of investments brought down to ₹2,00,000.

Investment fluctuation reserve will be distributed between:

[2 marks]

Old partners in old share

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New partners in new share

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Old partners in sacrificing ratio

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Old partner in gaining ratio

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Solution

The correct option is A Old partners in old share
The reserve for investment fluctuations that appeared on the balance sheet of the partnership firm before the reconstitution belonged to the old partners and was allocated according to the old proportion.

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Similar questions

Q. Following is the balance sheet of A, B, and C who share profits and losses of the business in the ratio of 3:2:1.

Additional Information:
a. On 1st April, 2021, they admitted D as a partner for 1/4th for which he brought ₹1,20,000 as his capital and ₹30,000 as a share of goodwill.
b.The value of furniture has increased by 10%.
c. Market value of investments brought down to ₹2,00,000.

Calculate the amount of investment fluctuation reserve to be credited to C's capital account:

[2 marks]

Q. Following is the balance sheet of A, B, and C who share profits and losses of the business in the ratio of 3:2:1.

Additional Information:
a. On 1st April, 2021, they admitted D as a partner for 1/4th for which he brought ₹1,20,000 as his capital and ₹30,000 as a share of goodwill.
b.The value of furniture has increased by 10%.
c. Market value of investments brought down to ₹2,00,000.

Calculate the amount of goodwill credited to A's, B's, and C's capital account:

[2 marks]

Q. Following is the balance sheet of A, B, and C who share profits and losses of the business in the ratio of 3:2:1.

Additional Information:
a. On 1st April, 2021, they admitted D as a partner for 1/4th for which he brought ₹1,20,000 as his capital and ₹30,000 as a share of goodwill.
b.The value of furniture has increased by 10%.
c. Market value of investments brought down to ₹2,00,000.

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Yash and Chirag are partners in a firm sharing profits and losses in 3 : 2. Their capitals were ₹2,40,000 and ₹1,60,000 respectively. There was a balance of ₹1,20,000 in general reserve and revaluation gain amounted to ₹30,000. They admitted Neha for 1/5th share in profits and losses for which she brought ₹1,80,000 as capital. Calculate the amount of goodwill of the firm:

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The correct option is A Old partners in old shareThe reserve for investment fluctuations that appeared on the balance sheet of the partnership firm before the reconstitution belonged to the old partners and was allocated according to the old proportion.

The correct option is A Old partners in old share
The reserve for investment fluctuations that appeared on the balance sheet of the partnership firm before the reconstitution belonged to the old partners and was allocated according to the old proportion.