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easyMCQCUET Accountancy 2025 27 May Shift 22026Accountancy
1 mark

The profit or loss on revaluation of assets and liabilities are distributed in:

  1. A
    New ratio.
  2. B
    Old ratio.
  3. C
    Gaining ratio.
  4. D
    Sacrificing 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.

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The profit or loss on revaluation of assets and liabilities are distributed in:
A
New ratio.
B
Old ratio.
C
Gaining ratio.
D
Sacrificing ratio.

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