Question

How to calculate new profit ratio in memorandum revaluation

Answer 1

First make revaluation account and calculate profit or loss in old profit sharing ratio

Then again make revaluation but all the items which were debited will credited and the items which were credited will be debited, if it was profit it will now come on right side i.e. Cr side. But it will be distributed in new profit sharing ratio

Whatever tge difference comes pass the journal entery