Under fixed capital method where is revaluation loss generally recorded?

Correct answer: Debit in old partners current accounts

The direct answer is Option A: under the fixed capital method, revaluation loss is generally debited to the old partners’ current accounts. In the fixed capital method, the capital accounts are intended to remain unchanged except for specific permanent capital transactions. Routine items such as profit, loss, drawings, interest, and revaluation results are therefore recorded through current accounts. Revaluation loss is first determined in Revaluation Account and is then transferred to the old partners in their old profit-sharing ratio. Option A is correct. Option B is wrong because it says capital accounts are always debited; under fixed capital, current accounts are normally used, although special instructions or a different method can alter treatment. Option C is wrong because the new partner’s bank account is not the account for an old revaluation loss. Option D is wrong because Trading Account records gross trading results, not revaluation adjustments. The key distinction is fixed capital versus fluctuating capital: fixed capital uses current accounts for routine changes.