On what basis is the deceased partner’s share of the profit arising from revaluation at the date of death added?

Correct answer: On the basis of his entitlement in the partnership up to the date of death

Revaluation is carried out at the date of death, so the deceased partner’s share of the resulting profit or loss is adjusted in his Capital Account or Current Account. This entitlement is based on his partnership rights up to the date of death, not on profits earned after death. Exam tip: Revaluation profit or loss is distributed among the old partners in their old profit-sharing ratio.