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Under the fluctuating capital method, where is revaluation profit generally credited on the admission of a partner?

Answer and explanation

Correct answer: Old partners’ capital accounts

Revaluation profit belongs to the partners who were in the firm before admission. Under the fluctuating capital method, it is credited directly to their capital accounts in their old profit-sharing ratio.

Related tags

Revaluation ProfitFluctuating Capital MethodAdmission Of PartnerAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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