Question : In case of dissolution of a partnership firm, what will be the treatment of investment fluctuation Reserve if the value of investment is not given in the assets side of the balance sheet?
Option 1: Transferred to debit side of realization account.
Option 2: Transferred to credit side of realization account
Option 3: Distributed among the partners.
Option 4: none of the above
Correct Answer: Distributed among the partners.
Solution : Answer = Distributed among the partners If Investment Fluctuation Reserves are given on the liabilities side of the Balance Sheet but the value of the investment is not given in the question, it should be distributed among the old Partners. Hence, the correct option is 3.
Question : Capital employed in a firm is calculated from the liabilities approach as follows
Question : At the time of the dissolution of the partnership firm. The amount of the Employees Provident Fund shown on the liabilities side of the balance sheet is transferred to
Question : In the event of dissolution of a partnership firm, the provision for doubtful debts is transferred to
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile