At the time of reconstitution, what effect will a revaluation loss have on the deceased partner’s capital or current account?

Correct answer: The deceased partner’s account will be debited with his share

A revaluation loss is distributed among the old partners in their old profit-sharing ratio. Therefore, the deceased partner’s share of the loss is debited to his capital or current account. In contrast, a revaluation profit is credited to the account. Exam tip: remember that loss is debited and profit is credited.