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L and M were in partnership sharing profits and losses equally. They admitted a new partner, P.

The partners do not have a partnership agreement. The terms of P’s admission were as follows:

1 Assets were revalued downwards by $\$ 60000$.

2 Goodwill was valued at $\$ 30000$ but was not retained in the books of account.

What will be the effect on L’s capital account balance on the admission of P? 

1 ) 

A

2 ) 

B

3 ) 

C

4 ) 

D

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