Question : At the time of admission of a partner, the balance of the Investments Fluctuation Reserve, after meeting the loss on revaluation of investments is transferred to _____________of __________in their_____________.
Option 1: All partners capital account and in their new profit sharing ratio
Option 2: Old partners capital account and in their sacrificing ratio
Option 3: Old partners capital account and in their old profit sharing ratio
Option 4: Only sacrificing partners capital account and their sacrificing ratio
Correct Answer: Old partners capital account and in their old profit sharing ratio
Solution : Answer = Old partner's capital account and in their old profit-sharing ratio After all adjustments the revaluation profit and loss are transferred to the old partner's capital account but if their capital is fixed then the current account and in their old profit-sharing ratio. Hence, the correct option is 3.
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