In Memorandum Revaluation Account the profit of the first part is shared among old partners in which ratio?

Correct answer: Old ratio

The correct answer is B: old ratio. A Memorandum Revaluation Account is used when partners want to record changes in asset and liability values without permanently changing the book values. Its first part works like an ordinary Revaluation Account. Since the revaluation relates to the period before the new partner’s admission, its profit or loss belongs only to the old partners. Therefore the profit in the first part is shared in the old profit-sharing ratio. Option A, the new ratio, applies to the period after admission, not this first part. Option C, equal ratio, is used only when the agreement says so, not automatically. Option D, sacrificing ratio, is used mainly for goodwill compensation, not for first-part memorandum revaluation profit. Remember: first part equals old revaluation; second part is reversed and follows the new ratio.