Why do firms revaluate assets and their liabilities on retirement or on the event of the death of a partner?

— Kishore V, SME and ACW at Edumarz

• Assets are revalued and liabilities are reassessed at the time of retirement or death of a partner so that the gain (profit) or loss arising from such revaluation up to the time of retirement or death of a partner can be determined and adjusted in the Capital Accounts of all the partners in their old profit-sharing ratio.