V and E are in partnership, sharing profits and losses equally.
Their capital accounts showed the following credit balances at 31 March 2021.
Z was admitted as a partner on 1 April 2021. At that date the following items were taken into account.
1 Non-current assets were revalued downwards by $\$ 20000$.
2 Goodwill was valued at $80 000, but will not remain in the books of account after Z is admitted.
The new profit-sharing ratio will be V 40%, E 30% and Z 30%.
What was the balance on E’s capital account after the admission of Z?
1 )
$\$ 30000$
$\$ 46000{\text{ }}$
3 )
$\$ 56000{\text{ }}$
4 )
$\$ 70000$
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