On the adjustment of capital of partners, any deficiency or surplus is adjusted through which account?

Either option 1 or 2

Sometimes, at the time of admission, the partners agree that their capitals should also be adjusted so as to be proportionate to their profit sharing ratio. In such a situation, if the capital of the new partner is given, the same can be used as a base for calculating the new capitals of the old partners. The capitals thus ascertained should be compared with their old capitals after all adjustments relating to goodwill reserves and revaluation of assets and liabilities, etc. have been made; and then the partner whose capital falls short, will bring in the necessary amount to cover the shortage and the partner who has a surplus, will withdraw the excess amount of capital. This deficiency or the excess in the old partner's capital account is to be adjusted through the current accounts or through cash which may be brought in or withdrawn by the partners.