Old partners A and B share profits and losses in the ratio of 5:4. If a revaluation loss of ₹36,000 arises, what amount will be debited to A’s Capital Account?

Correct answer: ₹20,000

A revaluation loss is borne by the old partners in their old profit-sharing ratio. A’s share is \(5/9\), so the amount debited to A’s Capital Account is \(₹36{,}000 \times 5/9 = ₹20{,}000\). ₹16,000 is B’s share because B’s ratio is \(4/9\). Exam tip: Use the old ratio for revaluation profit or loss and debit the partners’ Capital Accounts for a loss.