Sarthaks Test
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Ramesh wants to retire from the firm. The gain (profit) on revaluation on that date was 12,000. Mohan and Rahul want to share this in their new profit-sharing ratio of 3:2. Ramesh wants this to be shared equally. How is the profit to be shared? Give reasons.

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Revaluation of assets and liabilities is made at the time of ramesh 's retirement and not after retirement . Therefore ,profit on revaluation will be distributed among all the partner in their old profit sharing ratio .In the absence of partneship deed ,profits are distributed equally amount all the partners.

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