In adjustment of capital during admission of a partner, certain steps are followed. Arrange them in a sequence:

(A) Calculation of new profit sharing ratio

(B) Calculate required capitals of old partners

(C) Calculate the cash to be brought in or withdrawn by old partners

(D) Calculate firm's capital

Choose the correct answer from the options given below:

(A), (D), (B), (C)

Correct answer: Option (3) → (A), (D), (B), (C)

Concept: Adjustment of capitals on admission of a partner, per Reconstitution of a Partnership Firm – Admission of a Partner.

The NCERT sequence is: (A) calculate the new profit sharing ratio → (D) determine the firm’s total (agreed) capital → (B) work out each old partner’s required (proportionate) capital → (C) bring in the deficiency or withdraw the surplus cash. Hence A, D, B, C.