1.

Nitin, Tarun and Amar are partners sharing profits equally and decide to share profits in the ratio of 2 : 2 : 1 w.e.f . 1st April, 2018. The extract of their Balance Sheet as at 31st March, 2018 is as follows: Liabilities ₹ Assets ₹ Investments Fluctuation Reserve 60,000 Investments (At Cost) 4,00,000 Pass the journal entries in each of the following situations:(i) When its Market Value is not given;(ii) When its Market Value is given as ₹ 4,00,000;(iii) When its Market Value is given as ₹ 4,24,000;(iv) When its Market Value is given as ₹ 3,70,000;(v) When its Market Value is given as ₹ 3,10,000.

Answer» Nitin, Tarun and Amar are partners sharing profits equally and decide to share profits in the ratio of 2 : 2 : 1 w.e.f . 1st April, 2018. The extract of their Balance Sheet as at 31st March, 2018 is as follows:















Liabilities Assets
Investments Fluctuation Reserve 60,000 Investments (At Cost) 4,00,000



Pass the journal entries in each of the following situations:

(i) When its Market Value is not given;

(ii) When its Market Value is given as ₹ 4,00,000;

(iii) When its Market Value is given as ₹ 4,24,000;

(iv) When its Market Value is given as ₹ 3,70,000;

(v) When its Market Value is given as ₹ 3,10,000.


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