Question

Select the most appropriate answer from the alternatives given below : 

The profit or loss from revaluation on retirement of partners is shared by _____________

Options

• all the partners

• the remaining partners

• only the retiring partners

• none of these

Answer 1

The profit or loss from revaluation on the retirement of partners is shared by all the partners.

 

Explanation: Revaluation profit arising from the retirement of a partner is shared by all the partners in their old profit sharing ratio (including the retiring partner).