At the time of change in the profit-sharing ratio, any liability found unrecorded is debited to the Revaluation Account and the net result of the Revaluation Account (revaluation profit or revaluation loss) is debited/credited to the Partners’ Capital Accounts in their old profit-sharing ratio. In this manner, the partners are not put to any undue advantage or disadvantage. Also, according to the prudence concept, all probable losses should be anticipated. Abay must have stated the above accounting practice (rationale to account now) to Anirudh to convince him.