Question

Profit on revaluation account is transferred to continuing partners capital account only. (State True or False)

Answer 1

Yes

True

It shares in old partners

Answer 2

Answer:

True

Explanation:

As  per the question

Profit on revaluation account is transferred to continuing partners capital account only this is a true statement

The credit sides has ( assets increased in value - profit ) has more balance than the debit ( assets decreased in value - loss ) and thus there is more profits loss resulting in profit on valuation exercise

the profit will be share  according with the partners at the old profit sharing  ratio ( and now new profit sharing ratio ) . the new partner should not be sharing any gain or loss because they have  not participated in the business before .It is important to not apportion the revaluation at new profit sharing ratio.