What effect will the deceased partner’s share of revaluation loss have on the balance of the capital account?

Correct answer: Reduce the account balance

Revaluation loss is debited to the partners’ capital accounts in their old profit-sharing ratio. Therefore, the deceased partner’s share of the loss is debited to the account and reduces its balance. A revaluation profit would increase the balance, not a loss. Exam tip: revaluation profit is credited, whereas revaluation loss is debited.