On admission of a partner, the profit or loss on revaluation is distributed among the old partners.

Question

State True or False with reasons.

On admission of a partner, the profit or loss on revaluation is distributed among the old partners.

Answer 1

This statement is True.

At the time of admission of a new partner, existing assets and liabilities of the business are to be revalued and whatever the profit or loss is there it is to be distributed among old partners only.