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A B partners profit sharing ratio is 3:2 Half of the investment sold at a Profit of Rs10000 and the remaining investment was valued at Rs35000 and the actual value of investment is Rs50000 nd investment fluctuation fund is Rs18000 what adjustment is done on revaluation capital account nd balance sheet
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A B partners profit sharing ratio is 3:2 Half of the investment sold a...
Adjustment for Revaluation Capital Account and Balance Sheet for A B Partners

Profit Sharing Ratio and Sale of Half Investment
- A B Partners have a profit sharing ratio of 3:2
- Half of the investment was sold at a profit of Rs10000

Valuation of Remaining Investment
- The remaining investment was valued at Rs35000
- The actual value of investment is Rs50000

Investment Fluctuation Fund
- The investment fluctuation fund is Rs18000

Adjustment for Revaluation Capital Account
- The revaluation capital account needs to be adjusted to reflect the changes in the value of the investment
- The profit from the sale of half the investment needs to be added to the revaluation capital account
- The difference between the original value of the investment and the actual value needs to be added or subtracted from the revaluation capital account
- In this case, the revaluation capital account would be adjusted by adding Rs10000 (profit from sale) and subtracting Rs15000 (difference between actual value and valuation amount)

Adjustment for Balance Sheet
- The balance sheet needs to be adjusted to reflect the changes in the value of the investment and the revaluation capital account
- The investment account needs to be adjusted to reflect the actual value of the investment (Rs50000)
- The revaluation capital account needs to be included in the liabilities section of the balance sheet
- The investment fluctuation fund should be included in the assets section of the balance sheet
- In this case, the investment account would be adjusted by adding Rs15000 (difference between actual value and valuation amount)
- The revaluation capital account would be included in the liabilities section of the balance sheet with a balance of Rs-5000 (Rs10000 profit - Rs15000 difference)
- The investment fluctuation fund would be included in the assets section of the balance sheet with a balance of Rs18000.
Community Answer
A B partners profit sharing ratio is 3:2 Half of the investment sold a...
Profit will be distributed as 6000 and 4000 , remaing IFR also distributed as( 18000-15000= 3000 ) a take 1800 and b take 1200
investment will be shown in balance sheet as( 50000-15000-15000)= 50000
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A B partners profit sharing ratio is 3:2 Half of the investment sold at a Profit of Rs10000 and the remaining investment was valued at Rs35000 and the actual value of investment is Rs50000 nd investment fluctuation fund is Rs18000 what adjustment is done on revaluation capital account nd balance sheet
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A B partners profit sharing ratio is 3:2 Half of the investment sold at a Profit of Rs10000 and the remaining investment was valued at Rs35000 and the actual value of investment is Rs50000 nd investment fluctuation fund is Rs18000 what adjustment is done on revaluation capital account nd balance sheet for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A B partners profit sharing ratio is 3:2 Half of the investment sold at a Profit of Rs10000 and the remaining investment was valued at Rs35000 and the actual value of investment is Rs50000 nd investment fluctuation fund is Rs18000 what adjustment is done on revaluation capital account nd balance sheet covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A B partners profit sharing ratio is 3:2 Half of the investment sold at a Profit of Rs10000 and the remaining investment was valued at Rs35000 and the actual value of investment is Rs50000 nd investment fluctuation fund is Rs18000 what adjustment is done on revaluation capital account nd balance sheet.
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