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Amit and Sumit share profits in the old ratio of 3:2. A profit of ₹10000 arises from revaluation. What will be Amit's share of this profit?

Answer and explanation

Correct answer: ₹6000

Revaluation profit is distributed among the old partners in their old profit-sharing ratio. Amit's share is \(₹10000 \times \frac{3}{3+2} = ₹6000\), so option C is correct. ₹5000 represents one-half of the total profit, whereas Amit is entitled to 3 out of 5 parts. Exam tip: distribute revaluation profit or loss in the old ratio, not the new ratio.

Related tags

AccountancyRevaluation ProfitOld RatioProfit SharingAdmission Of PartnerAsset RevaluationReconstitution Admission Of A PartnerClass 12 Mcq

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