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?
A
2 )
B
3 )
C
4 )
D
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