Question : Gain/loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by ______(i)_____ whereas in case of admission of a partner, it is shared by _____(ii)_____.
Option 1: (i) Remaining Partners, (ii) All Partners.
Option 2: (i) All Partners, (ii) Old partners.
Option 3: (i) New Partner, (ii) All partner
Option 4: (i) Sacrificing Partner, (ii) Incoming partner
Correct Answer: (i) All Partners, (ii) Old partners.
Solution : Answer = (i) All Partners, (ii) Old partners.
In the case of a change in profit-sharing ratio among existing partners, the gain or loss on revaluation is shared by all partners because it affects their collective interests. However, during the admission of a new partner, the gain or loss is borne by the existing partners as it concerns their individual shares.
Hence, the correct option is 2.
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