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If a revaluation loss of ₹18,000 is incurred and the old partners share profits and losses in the ratio 4:5, how much loss will be debited to the first partner’s account?

Answer and explanation

Correct answer: ₹8,000

A revaluation loss is distributed among the old partners in their old profit-sharing ratio. The total parts are \(4+5=9\). The first partner’s loss is \(₹18,000 \times \frac{4}{9}=₹8,000\). ₹10,000 is the loss of the second partner, not the first. Exam tip: Always distribute revaluation profit or loss in the old ratio.

Related tags

Asset RevaluationLoss SharingOld RatioPartnership AccountsAdmission Of PartnerReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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