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Why is the new partner not given share in revaluation profit?

Answer and explanation

Correct answer: Because the profit relates to assets and liabilities before admission

Revaluation corrects the position of the old business. Therefore its profit or loss belongs to old partners.

Related tags

New PartnerOld RatioReasoningAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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