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If old partners distribute revaluation profit before admitting the new partner in which ratio will it be considered correct?

Answer and explanation

Correct answer: In old profit sharing ratio

Revaluation profit belongs to the firm before admission. Therefore it is distributed among old partners in old profit sharing ratio.

Related tags

Revaluation ProfitOld RatioAdmissionAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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