S1: Revaluation Account is prepared to record changes in the values of assets and liabilities. S2: The profit or loss on revaluation is transferred to the old partners' capital accounts in their sacrificing ratio. Which statement(s) is/are correct?
Explanation:
Revaluation Account records the changes in asset and liability values at the time of admission/retirement. The net profit or loss is distributed among the old partners in their old profit-sharing ratio (which is the sacrificing ratio for the retiring partner). Both are correct.
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