CBSE 2023 · Region 5 · Set 3 · Q7

Indu, Vijay and Pawan were partners in a firm sharing profits in the ratio of $\displaystyle 4$ : $\displaystyle 3$ : 3. They admitted Subhash into partnership with effect from 1st April, 2022. New profit sharing ratio among Indu, Vijay, Pawan and Subhash will be $\displaystyle 3$ : $\displaystyle 3$ : $\displaystyle 2$ : 2. An extract of their Balance Sheet as at 31st March, $\displaystyle 2022$ is given below : Amount Amount Liabilities Assets it) (z) Investment $\displaystyle 80,000$ Investments $\displaystyle 90,000$ Fluctuation Reserve (Market Value ₹ $\displaystyle 80,000$) Which of the following is the correct accounting treatment of 'investment fluctuation reserve' at the time of Subhash's admission ?