Question : Chain and Harsha were partners in a firm sharing profits in the ratio of 3: 2. On 1-4-2014 their Balance Sheet was as follows :

Balance Sheet of Charu and Harsha as on 1st April, 2014
Liabilities	Amount(Rs)	Assets	Amount(Rs)
Creditors	17,000	Cash	6,000
General Reserve	4,000	Debtors	15,000
Workmen Compensation Fund	9,000	Investments	20,000
Investment Fluctuation Fund	11,000	Plant	14,000
Provision for bad debts	2,000	Land & buildings	38,000
Capitals:
Charu- 30,000
Harsha- 20,000	50,000
	93,000		93,000

On the above date Vaishali was admitted for 1/4 th share in the profits of the firm on the following terms :
(a) Vaishali will bring Rs.20,000 for her capital and Rs.4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs. 15,000.
(d) There was a liability of Rs.6,000 for workmen compensation.
(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening current accounts.
Question:
Amount distributed among the old partners capital account in Respect of Investment fluctuating fund.

Option 1: debiting charu's capital account with Rs 36,00 and harsha with Rs 2,400

Option 2: crediting Charu's Capital account with Rs 3,600 and Harsh with Rs 2,400

Option 3: crediting Charu's capital account with Rs 6,600 and Harsh's with Rs 4,400

Option 4: None of these

Team Careers360 13th Jan, 2024