Why are changes in the values of existing assets and liabilities at the time of admission kept separate from the incoming partner?

Correct answer: Because these changes relate to assets and liabilities from before the incoming partner joined

The revaluation concerns assets and liabilities belonging to the period before the new partner joined. Therefore, any revaluation profit or loss is credited or debited to the old partners’ capital accounts in their old profit-sharing ratio, rather than being shared with the incoming partner.