Question

Profit on revaluation account is distributed between the old partners on admission of a partner. (State True or False)

Answer 1

YES.

IT IS DISTRIBUTED IN OLD PARTNERS

Answer 2

Answer:

True

Explanation:

Profit on revaluation account is distributed between the old partners on admission of a partner - True

Credit balance is referred to as profit on revaluation in the Revaluation Account. Such earnings are to be transferred in their ancient profit-sharing ratio to the capital accounts of ancient (or current) partners.

In the event of a partner's admission, the old partners share in their old profit-sharing ratio the profit or loss on the revaluation of assets and liabilities. This is because profit on asset and liability revaluation is only a gain for current partners and the new partner has no right to such earnings earned prior to the admission.