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A firm distributed revaluation profit ₹54000 in new ratio 2:2:1. The old ratio was 2:1. What is the correct correction?

Answer and explanation

Correct answer: Profit should be shared by old partners in 2:1

Revaluation profit relates to the position before admission. Therefore old ratio applies and not the new ratio.

Related tags

Error CorrectionOld RatioRevaluation ProfitAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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