Question

Profit on revaluation of assets and liabilities at the time of retirement of a partner will be credited to __________________.

• A. Remaining partners in the profit sharing ratio
• B. All the partners in their old ratio
• C. Remaining partners in their gaining ratio
• D. Capital Ratio

Answer 1

The correct option is B All the partners in their old ratio

A Revaluation Account is prepared in order to ascertain net gain or loss on revaluation of assets and liabilities and bringing unrecorded items into books. The Revaluation profit or loss is transferred to the capital account of all partners including retiring or deceased partners in their old profit sharing ratio.