what is Investment Fluctuation Fund? is it reserve or
provison?
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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 | 14 No |
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 | 10 No |
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 |
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 ? | 8 Yes | 5 No |
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 ? | 1 Yes | 1 No |
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 |
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 |
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 |
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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