A and B share profits and losses in the ratio of 2:1. At the time of admission of a new partner, the Revaluation Account shows a profit of ₹36,000. This profit is to be distributed among the old partners. What amount will be credited to A’s Capital Account?

Correct answer: ₹24,000

A revaluation profit is distributed among the old partners in their old profit-sharing ratio. A’s share is \(\frac{2}{2+1}=\frac{2}{3}\). Therefore, the amount credited to A is \(₹36,000 \times \frac{2}{3}=₹24,000\). ₹12,000 is B’s one-third share, not A’s share. Exam tip: Revaluation profit or loss is divided in the old partners’ old ratio, not in the new ratio.