Question

why partner's capital account are prepared after revaluation​

Answer 1

Answer:

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Explanation:

At the time of admission of a new partner, we need to revalue the existing assets and liabilities and thus, prepare the revaluation account. The value of assets may be different from its book value because, with time, the value of some assets increases while that of some decreases. Also, the value of liabilities may be different from their book values. Also, there must be some assets or liabilities that are not recorded in the books need to be recorded.

Answer 2

Answer:

Assets and liabilities are revalued and the old partners are debited or credited with the net loss or profit, as the case may, in the ratio in which they have been sharing profitd and losses hitherto.