P and Q are in partnership sharing profits and losses equally. On 1 January 2021, the partnership had net assets of $\$ 410000$. At that date, R was admitted into the business on the following terms.
1 Net assets to be revalued to $\$ 480000$.
2 Goodwill was valued at $\$ 50000$ but will not be retained in the books of account.
3 Profits and losses will now be shared P 40%, Q 40% and R 20%.
What was the change in Q’s capital immediately after R’s admission?
1 )
decrease by $\$ 33000$
2 )
decrease by $\$ 40000$
3 )
increase by $\$ 33000$
increase by $\$ 40000$
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