Question

In which ratio profit & loss of revaluation account is distributed between partners.​

Answer 1

ANSWER :

★ Old Profit Sharing Ratio

• ✎ The profit and loss of revaluation account is distributed between partners in the old profit sharing ratio.

• ✎ The amount of profit on revaluation or loss on revaluation is tranferred to the capital accounts of the existing partners.

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KNOW MORE :

❍ Revaluation Account :-

• ✎ Revaluation Account is prepared on the reconstitution of a partnership firm such as admission of a partner, retirement of a partner or death of a partner.

• ✎ This account is prepared for making this is an adjustment in the value of Assets and liabilities as agreed among the partners.

• ✎ The balance of revaluation account is term as profit on revaluation or loss on revaluation and is closed by transfer to existing partners capital account in their profit sharing ratio.

Answer 2

Answer:

(D) Old profit — loss ratio