Why is revaluation loss deducted from the deceased partner’s share while calculating the amount due to him or her?

Correct answer: Because the partner shared both profits and losses up to the date of death

Revaluation loss relates to the period during which the deceased partner was a member of the firm. Therefore, it is distributed among the old partners in their old profit-sharing ratio, and the deceased partner’s share of the loss is deducted from the amount due to him or her. The idea that a partner shares only profits is incorrect because partners share both profits and losses. Exam tip: Profits, losses, and revaluation results up to the date of death or retirement are generally distributed among the old partners in the old ratio.