X and Y were partners and shared profit and loss equally. Z joined the partnership, and it was agreed that profit and loss would still be shared equally. Goodwill was to be assessed on the date of admission, but it was not kept in the books of account. In what way did the goodwill adjustment affect the partners’ capital accounts?
- AX’s capital account decrease, Y’s capital account decrease, Z’s capital account decrease
- BX’s capital account decrease, Y’s capital account decrease, Z’s capital account increase
- CX’s capital account increase, Y’s capital account increase, Z’s capital account decrease
- DX’s capital account increase, Y’s capital account increase, Z’s capital account increase