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State True or False with reasons:Revaluation profit is distributed among all partners including new partners. |
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Answer» This statement is False. Revaluation profit arises due to efforts and hardworking of the old partners in the past and hence profit earned on revaluation of assets and liabilities at the time of admission of a person as a partner in the business belongs to old partners. So, such profit is not distributed among all partners including the new partners. It is distributed only among old partners. |
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