Question :
At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of
Option 1: retiring partner.
Option 2:
all partners in their old profit-sharing ratio.
Option 3:
the remaining partners in their old profit-sharing ratio.
Option 4:
the remaining partners in their new profit-sharing ratio.
Correct Answer:
all partners in their old profit-sharing ratio.
Solution : Answer = all partners in their old profit-sharing ratio.
When a partner retires, the gain on the revaluation of assets is credited to the Capital Accounts of all partners in their old profit-sharing ratio. This ensures that all partners benefit from the increased value of the assets and reflects their respective interests in the partnership's assets.
Hence, the correct option is 2.
