Revaluation profit shared by old partners

Steps:

• Identify old partners (X and Y) sharing equally before Z's admission.
• Calculate revaluation profit share: $36,000 total, so$18,000 each to X and Y.
• Record entry: Debit revaluation account $36,000; credit X and Y capital accounts$18,000 each.
• Z joins post-revaluation, so no share in profit.

Why C is correct:

• Per partnership accounting, revaluation profit adjusts existing partners' capital in old ratio (equal for X and Y), excluding new partner Z.

Why the others are wrong:

• A: Uses current accounts, but revaluation affects capital accounts.
• B: Splits profit equally among three, wrongly including Z.
• D: Credits capital but divides equally among X, Y, Z, ignoring old ratio.

Final answer: C