L and M were in a partnership and shared profits and losses in equal proportions. They took in a new partner, P. There is no partnership agreement. The conditions for P’s admission were: 1 Assets were reduced in value by $60000. 2 Goodwill had a value of $30000, but it was not kept in the books of account. What effect will this have on the balance of L’s capital account when P is admitted?
- Adecrease; increase
- Bdecrease; decrease
- Cincrease; increase
- Dincrease; decrease