If credit side of Revaluation Account exceeds debit side by ₹32000 to whom will this amount be given?

Correct answer: To old partners in old ratio

The direct answer is option C: the ₹32,000 is given to the old partners in their old profit-sharing ratio. A Revaluation Account records increases and decreases in assets and liabilities when a new partner is admitted. If its credit side is greater than its debit side, the difference is a revaluation profit. This profit arose from changes relating to the period before admission, so the incoming partner has no right to it. Step by step: credit items such as increase in assets or decrease in liabilities are compared with debit items such as decrease in assets or increase in liabilities; credit excess equals ₹32,000 profit; that profit is transferred to the old partners’ capital or current accounts; distribution is made in the old ratio. Option A is wrong because the new ratio is used for future profits, not this past revaluation profit. Option B is wrong because the new partner did not own the business during the period in which the gain arose. Option C is correct because old partners bear the old risks and receive past profits in the old ratio. Option D is wrong because sacrificing ratio is mainly used for goodwill compensation, not for distributing revaluation profit. Memory cue: past revaluation profit belongs to old partners, and old profit ratio is used.