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Question
Mittal and Sons earned a profit of ₹ 2,75,000 during the year ended 31st March, 2016. 10% of this profit was to be transferred to the Investment Fluctuation Reserve. Pass the necessary journal entry for the same.
Journal Entry
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Solution
| Journal Entry | ||||
| Date | Particulars | L.F | Debit (₹) | Credit (₹) |
| Profit and Loss Appropriation A/c ...Dr. | 27,500 | - | ||
| To Investment Fluctuation Reserve A/c | - | 27,500 | ||
| (Being 10% of profit transferred to investment fluctuation reserve.) | ||||
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