Why is revaluation profit included in the deceased partner’s share?

Correct answer: Because he was a partner of the firm up to the date of death

Revaluation profit arises from the change in the values of assets and liabilities up to the date of death. Since the deceased partner was a partner up to that date, his share of this profit is credited in the old profit-sharing ratio. He is not entitled to it as a new partner or creditor. Exam tip: profits or losses accrued up to the date of death are adjusted in the deceased partner’s Capital or Current Account.