what is the treatment for investment fluctuation fund in partnership
Investment fluctuation fund, if there is no investment distribute it in the old ratio.If there is investment whose value doesn't change, then also distribute IFF in old ratio.
If investment's value decreases then subtract that amount from IFF and distribute the remaining. If the investment value increases , the difference comes in revaluation and the IFF is distributed to partners.
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First of all, Investment fluctuation fund is a special reserve.
If any adjustment is given in respect of investment fluctuation fund like increase or decrease in investment, then first adjust it and then appropriate(distribute) the adjusted amount among the old partners in the old profit sharing ratio...
If there is no adjustment given for IFF then simply distribute the IFF among the old partner in the old ratio.
Same treatment will be given to:
1 workmen's compensation reserve
2 Dividend equalisation reserve
3 foreign development reserve
4 other special reserve.
If any adjustment is given in respect of investment fluctuation fund like increase or decrease in investment, then first adjust it and then appropriate(distribute) the adjusted amount among the old partners in the old profit sharing ratio...
If there is no adjustment given for IFF then simply distribute the IFF among the old partner in the old ratio.
Same treatment will be given to:
1 workmen's compensation reserve
2 Dividend equalisation reserve
3 foreign development reserve
4 other special reserve.
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It is distributed among old partners in their old p.s.r if there is no claim .if there is partly claim such as 20000 is I.F.F claim is of 10000 the remainig 10k will distributed among the old partners and if it is full claim against IFF then nothing is distributed if claim exceeds IFF then account is revalued the revalued amt is given by partners in thier P.S.R.
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