Partnership - Revaluation and Memorandum revaluation

Accountancy

Sir... Let.. Old partner be A,B Incoming partner C Asset value before admission is 1L Current market value of that asset is 1cr. Admission of C happens Revaluation is made only because C should not enjoy the profits...... Upto this understood..... My doubt: If the Question tells that "value of assets and liabilities should remains unchanged" Is that means the incoming partner is having also having right to enjoy the profits arising out of the increase in value of land?

Girinath A

CA Inter

★ 765

15-Dec-20 00:21

685

Answers (1)

When value is not changed, the incoming partner bears a part of the revaluation profits. Credited to old partners in Old PSR Debited to old+new in new PSR.

CA Suraj Lakhotia

Admin

15-Dec-20 04:58