Two old partners share profits in equal proportions. At the time of admission of a new partner, revaluation of assets results in a profit of ₹7000. What amount of this profit will be credited to each old partner’s account?

Correct answer: ₹3500

Revaluation profit is distributed among the old partners in their old profit-sharing ratio. Since the ratio is equal, it is 1:1; therefore, each partner receives ₹7000 × 1/2 = ₹3500. Exam tip: Revaluation profit or loss is transferred to the old partners’ accounts before the admission of the new partner.