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Why does the new partner not receive a share of revaluation profit at the time of admission?

Answer and explanation

Correct answer: Because the profit relates to assets and liabilities before admission

Revaluation corrects the position before admission so the gain belongs to old partners. In exams always remember the old ratio.

Related tags

ConceptualOld PartnersRevaluation ProfitAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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