A, B and C are old partners sharing profits in the ratio 2:3:5. A revaluation profit of ₹80,000 is earned. How much of this profit will be credited to B’s capital account?

Correct answer: ₹24,000

Revaluation profit is distributed among the old partners in their old profit-sharing ratio. B’s share is \(\frac{3}{2+3+5}=\frac{3}{10}\). Therefore, the amount credited to B’s capital account is ₹80,000 × \(\frac{3}{10}\) = ₹24,000. ₹40,000 represents the 5/10 share belonging to C, not B. Exam tip: Revaluation profit arising at the time of admission is transferred to old partners in their old ratio.