Question

X, Y and Z were partners. On 30th June 2019 Y retired. The extract of their balance sheet is given below:

Balance Sheet [An Extract]
Liabilities	Amount (₹)	Assets	Amount (₹)
Investment Fluctuation Fund	10,000	Investments [Market value ₹ 80,000]	1,00,000

What Journal Entry will be passed for the above item on Y's retirement?

विकल्प

• Investment Fluctuation Fund A/c  Dr.	10,000	-
  To X's Capital A/c	-	3333
  To Y's Capital A/c	-	3333
  To Z's Capital A/c	-	3334

• Investment Fluctuation Fund A/c  Dr.	10,000	-
  Investments A/c   Dr.	20,000	-
  To X's Capital A/c	-	10,000
  To Y's Capital A/c	-	10,000
  To Z's Capital A/c	-	10,000

• Investment Fluctuation Fund A/c  Dr.	10,000	-
  Revaluation A/c  Dr.	10,000	-
  To Investments A/c	-	20,000

• Investment A/c  Dr.	10,000	-
  To Investment Fluctuation Fund A/c	-	10,000

Answer 1

Investment Fluctuation Fund A/c  Dr.	10,000	-
Revaluation A/c  Dr.	10,000	-
To Investments A/c	-	20,000

Explanation:

The fluctuation amount is written by the margin of loss in the case of an investment fund, but because there is profit in this situation, the revaluation amount will be charged with the difference amount.