HomeTestsSearchRankProfile
mediumMCQCUET Accountancy 2025 3 June Shift 12026Accountancy
1 mark

In the case of a re-constitution of a partnership firm, if the value of decrease in investment exceeds the Investment Fluctuation Fund, the :-

  1. A
    Excess amount of loss will be debited to Revaluation Account.
  2. B
    Excess amount of loss will be credited to Revaluation Account.
  3. C
    Excess amount of gain will be debited to Revaluation Account.
  4. D
    Excess amount of gain will be credited to Revaluation Account.

Solution & Step-by-step Explanation

The Investment Fluctuation Fund (IFF) is created to cover unexpected market drops in investments.If the drop in investment value is less than or equal to the IFF, it is absorbed entirely within the reserve.If the drop exceeds the total amount available in the IFF, the remaining unabsorbed deficit is an absolute loss and must be debited to the Revaluation Account.

Practice this question

Try it yourself before checking the explanation above.

In the case of a re-constitution of a partnership firm, if the value of decrease in investment exceeds the Investment Fluctuation Fund, the :-
A
Excess amount of loss will be debited to Revaluation Account.
B
Excess amount of loss will be credited to Revaluation Account.
C
Excess amount of gain will be debited to Revaluation Account.
D
Excess amount of gain will be credited to Revaluation Account.

Share This Question

PartnershipRetirement/DeathCUET

Related Questions

easyMCQ

Which one of the following statements is true?

easyMCQ

Which of the following statements is not correct?

easyMCQ

Which one of the following statements is correct?

easyMCQ

The product formed by the reaction of an aldehyde with a primary amine is:

easyMCQ

Which part of the tobacco plant is infected by Meloidogyne incognita?

easyMCQ

The term ecosystem was coined by:

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Browse TestsLeaderboard

Discussion