diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index 4baf9a631b..bbc20ba0cf 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -1,3 +1,11 @@
+19990804-00:15 EDT David G. Holm <dholm@jsd-llc.com>
+  * source/rtl/math.c
+    ! Corrected MOD() to set the correct number of decimal points.
+  * source/vm/hvm.c
+    ! Corrected Div() to set the correct number of decimal points.
+    ! Corrected Modulus() to use fmod() instead of the % operator.
+    ! Corrected Modulus() to set the correct number of decimal points.
+
 19990803-22:10 EDT David G. Holm <dholm@jsd-llc.com>
   * source/rtl/setcolor.c
     + Added missing '#ifdef HARBOUR_USE_GTAPI'.
diff --git a/harbour/source/rtl/math.c b/harbour/source/rtl/math.c
index 80b65282cc..16b2da3229 100644
--- a/harbour/source/rtl/math.c
+++ b/harbour/source/rtl/math.c
@@ -244,9 +244,15 @@ FUNCTION MOD(cl_num, cl_base)
             hb_retnd(dResult + dBase);
          else
             hb_retnd(dResult);
+         /* Always set default number of decimals after computing mod */
+         stack.Return.item.asDouble.decimal = hb_set.HB_SET_DECIMALS;
       }
       else
+      {
          hb_retnd(dNumber);
+         /* Set the correct number of decimals */
+         stack.Return.item.asDouble.decimal = (pNumber->item.asDouble.decimal);
+      }
    }
    else
    {
diff --git a/harbour/source/vm/hvm.c b/harbour/source/vm/hvm.c
index bf0654cfdf..1ddf045d77 100644
--- a/harbour/source/vm/hvm.c
+++ b/harbour/source/vm/hvm.c
@@ -702,7 +702,9 @@ void Div( void )
    double d2 = PopDouble( &wDec2 );
    double d1 = PopDouble( &wDec1 );
 
-   PushNumber( d1 / d2, (wDec1>wDec2) ? wDec1 : wDec2 );
+   /* NOTE: Clipper always returns the result of a division
+            with the SET number of decimal places. */
+   PushNumber( d1 / d2, hb_set.HB_SET_DECIMALS );
 }
 
 void Do( WORD wParams )
@@ -1346,7 +1348,9 @@ void Modulus( void )
    double d2 = PopDouble( &wDec2 );
    double d1 = PopDouble( &wDec1 );
 
-   PushNumber( ( long ) d1 % ( long ) d2, (wDec1>wDec2) ? wDec1 : wDec2 );
+   /* NOTE: Clipper always returns the result of modulus
+            with the SET number of decimal places. */
+   PushNumber( fmod( d1, d2 ), hb_set.HB_SET_DECIMALS );
 }
 
 void Mult( void )