X and Y were in partnership sharing profits and losses equally.
Z was admitted as a partner and the profit and loss sharing ratio for X, Y and Z will be 2 :2 :1
respectively.
On the date of admission, the value of non-current assets was increased by $48 000.
Goodwill was valued at $30 000 but would not be retained in the books of account.
What was the effect on X’s capital account?
1 )
increased by $19 200
2 )
increased by $24 000
increased by $27 000
4 )
increased by $31 200
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