The Revaluation Account shows a profit of ₹42,000. The old partners share profits in the ratio 5:4:3. What amount of this profit will be credited to the capital account of the third old partner?

Correct answer: ₹10,500

A revaluation profit is distributed only among the old partners in their old profit-sharing ratio. The total of the ratio is 5+4+3=12, and the third partner’s share is 3/12. Therefore, the amount credited is ₹42,000 × 3/12 = ₹10,500. Option B is the second partner’s 4/12 share, not the third partner’s share. Exam tip: On admission of a partner, revaluation profit or loss is transferred to the old partners in their old ratio.