The profit or loss on revaluation of assets and liabilities are distributed in:
- ANew ratio.
- BOld ratio.
- CGaining ratio.
- DSacrificing ratio.
Solution & Step-by-step Explanation
Revaluation adjustments relate to changes in asset and liability values accumulated up to the date of reconstitution. Therefore, any net revaluation profit or loss belongs entirely to the existing partners and must be divided in their Old Profit Sharing Ratio.