what is Investment Fluctuation Fund? is it reserve or
provison?

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what is Investment Fluctuation Fund? is it reserve or provison?..

Answer / grewal rajwant kaur

It is not an accumulated reserve but an provision made
against asset hence not credited to partner's capital like
reserves like profit and loss a/c,general reserve,workmen
accident compensation fund etc but will be shown in the
balance sheet liablity side

Is This Answer Correct ?    43 Yes 13 No

what is Investment Fluctuation Fund? is it reserve or provison?..

Answer / kamlesh vaghela

Its not a free reserve but a provision which is created for writing off decresed value of investment........It is tranfered to Realization Account or in Balance Sheet....It should not to be distributed to the partners' Capital Account.

Is This Answer Correct ?    26 Yes 9 No

what is Investment Fluctuation Fund? is it reserve or provison?..

Answer / vikas

it is a provision because as per the defination of
provision it is created for unsertian liabilities without
the amount with substiential accqurecy

Is This Answer Correct ?    26 Yes 22 No

what is Investment Fluctuation Fund? is it reserve or provison?..

Answer / marudhappan

Imvestment fluctuation fund is not a reserve...it is a provision for investment i.e., land, building etc...it will come under liability side in the balance sheet...if any balance remains in investment fluctuation reserve after clearing the losses..it will be distributed to the partners in their ratio.

Is This Answer Correct ?    7 Yes 5 No

what is Investment Fluctuation Fund? is it reserve or provison?..

Answer / mahima

Investment fluctuation is a type of reserve but it may be created out of profit ,so that any loss due to decrease in value of investment can be met out of investment fluctuation fund and left balance is distributed among the old partners in there old profit sharing ratio

Is This Answer Correct ?    0 Yes 1 No

what is Investment Fluctuation Fund? is it reserve or provison?..

Answer / anshita dutta

The difference between reserve and provision is that in reserve both chance of actual liability ( or losses)and amount of liability is uncertain but in provision chances of actual liability(or losses) is certain but it's amount is uncertain.......since we do not know that the value of investment would decrease with 100%certainty therefore it's is a reserve and not provision

Is This Answer Correct ?    5 Yes 11 No

what is Investment Fluctuation Fund? is it reserve or provison?..

Answer / dipti brahmbhatt

i think its reserve but it deduct from investment because
its chrge to p&l a/c.actually its a fund create for future
losses.

Is This Answer Correct ?    17 Yes 26 No

what is Investment Fluctuation Fund? is it reserve or provison?..

Answer / tushar

it is a reserve..it can be distribute in the partners capital account or can be shown in the new balancesheet.

Is This Answer Correct ?    5 Yes 21 No

what is Investment Fluctuation Fund? is it reserve or provison?..

Answer / damini

it is a reserve becz it is credited to partner's capital a/c

Is This Answer Correct ?    6 Yes 27 No

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