CUET Preparation Today
At the time of retirement of a partner, where will be the profit on revaluation will be credited? |
Capital Account of retiring partner Capital Accounts of all partners in the old profit sharing ratio Capital Accounts of the remaining partners in their old profit sharing ratio Capital Accounts of the remaining partners in their new profit sharing ratio |
Capital Accounts of all partners in the old profit sharing ratio |
The correct answer is option 2- Capital Accounts of all partners in the old profit sharing ratio. If there is revaluation profit, then such profit should be distributed amongst the existing partners including the retiring partner at the existing ratio i.e., in old profit sharing ratio and if there is any loss on revaluation that is also to be distributed amongst all the partners in existing ratio. |
