If assets increase by ₹72,000 and liabilities increase by ₹46,000 on admission, what will be the result of revaluation?

Correct answer: Profit of ₹26,000

The governing concept is that an increase in an asset creates a revaluation gain, whereas an increase in a liability creates a revaluation loss. The asset-side gain is ₹72,000 and the liability-side loss is ₹46,000. Therefore, net revaluation result = ₹72,000 − ₹46,000 = ₹26,000 profit. This profit is credited to Revaluation Account and later distributed among the old partners in their old profit-sharing ratio. Hence option A is correct. Option C incorrectly adds both changes, although the liability increase must be deducted. Option B reverses the sign of the net result, and option D ignores the asset gain completely.