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Profit or Loss on revaluation of assets and reassessment of liabilities is transferred to partners capital account in their –

3. Profit or Loss on revaluation of assets and reassessment of liabilities is transferred to partners capital account in their:

1. Capital ratio
2. Equal ratio
3. Old profit-sharing ratio
4. Gaining ratio

Answer: C) Old profit-sharing ratio

Explanation:

Profit or Loss on revolution of each asset and reassessment of liabilities is transferred to the partners capital account in their old profit-sharing ratio.