On the basis of which profit-sharing ratio is the deceased partner’s share of revaluation profit up to the date of death calculated?

Correct answer: Profit-sharing ratio before death

Revaluation profit or loss arising up to the date of death is distributed in the old profit-sharing ratio because the original partnership agreement remains effective until that date. Hence, the deceased partner’s share is calculated using the profit-sharing ratio before death. The new ratio applies only to the period after reconstitution. Exam tip: For profits or losses up to retirement or death, generally use the old ratio.