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On Dissolution of a firm Investment fluctuation reserve appearing in the balance sheet will be:
  • a)
    debited to Realisation A/c with full value
  • b)
    credited to realisation A/c with full value
  • c)
    debited to all Partner’s Capital A/c in their profit sharing ratio
  • d)
    credited to all Partners’ Capital A/c in their profit sharing ratio
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
On Dissolution of a firm Investment fluctuation reserve appearing in t...
On dissoulation IFR transfer to credit side of Realisation account.
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On Dissolution of a firm Investment fluctuation reserve appearing in t...
Explanation:

Investment Fluctuation Reserve:
- Investment Fluctuation Reserve is created to absorb any fluctuations in the value of investments held by the firm.

On Dissolution of a Firm:
- When a firm is dissolved, the assets and liabilities are realized and distributed among the partners.

Treatment of Investment Fluctuation Reserve:
- The Investment Fluctuation Reserve appearing in the balance sheet will be credited to the Realisation A/c with the full value.
- This means that the reserve will be transferred to the Realisation Account to be distributed among the partners during the dissolution process.
Therefore, the correct option is:

b) credited to Realisation A/c with full value
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On Dissolution of a firm Investment fluctuation reserve appearing in the balance sheet will be:a)debited to Realisation A/c with full valueb)credited to realisation A/c with full valuec)debited to all Partner’s Capital A/c in their profit sharing ratiod)credited to all Partners’ Capital A/c in their profit sharing ratioCorrect answer is option 'B'. Can you explain this answer?
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On Dissolution of a firm Investment fluctuation reserve appearing in the balance sheet will be:a)debited to Realisation A/c with full valueb)credited to realisation A/c with full valuec)debited to all Partner’s Capital A/c in their profit sharing ratiod)credited to all Partners’ Capital A/c in their profit sharing ratioCorrect answer is option 'B'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about On Dissolution of a firm Investment fluctuation reserve appearing in the balance sheet will be:a)debited to Realisation A/c with full valueb)credited to realisation A/c with full valuec)debited to all Partner’s Capital A/c in their profit sharing ratiod)credited to all Partners’ Capital A/c in their profit sharing ratioCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On Dissolution of a firm Investment fluctuation reserve appearing in the balance sheet will be:a)debited to Realisation A/c with full valueb)credited to realisation A/c with full valuec)debited to all Partner’s Capital A/c in their profit sharing ratiod)credited to all Partners’ Capital A/c in their profit sharing ratioCorrect answer is option 'B'. Can you explain this answer?.
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