Question

when
a partner retires, the profit of a revaluation a/c is credited to partners capital
por
b) In heir profit ratio c) In their capital ratio
​

Answer 1

Answer:

When a partner of a firm retires, it is for the continuing partners to agree amongst themselves as to in what ratio, they shall share the profit and loss of the firm in future. The ratio so agreed upon is called New Profit Sharing Ratio.

Answer 2

Answer:

In their profit sharing ratio

Explanation:

When a partner retires, the profit of a revaluation a/c is credited to the partner's capital in their profit-sharing ratio.

• Whenever a new partner is admitted, it becomes necessary to revalue the assets and liabilities of the firm to their true and fair values.
• Revaluation of assets and liabilities is done with the help of a new a/c " revaluation a/c ".
• Sometimes it is also called a " Profit and Loss adjustment account. "
• The profit and loss adjustment accounts are nominal in nature.
• Thus, if there are any losses due to revaluation they will be debited and if the result of revaluation is profit then it will be credited, according to the rule of Nominal Account.  

Thus, we a partner retires, the profit will be credited in their Profit sharing ratio.

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