Which item will be credited to the old partners?

Correct answer: Credit balance of Profit and Loss Account

A credit balance in the Profit and Loss Account represents accumulated profit that has not yet been distributed or transferred to the partners. Because this profit was earned before the admission of the new partner, the governing rule is that it must be credited to the old partners’ capital or current accounts in their old profit-sharing ratio. Therefore, option A is correct. Preliminary expenses and advertisement suspense expenditure are debit or fictitious assets and are normally written off by debiting the old partners. A debit balance of the Profit and Loss Account represents accumulated loss, so it is also debited to the old partners rather than credited. The distinction depends on whether the item represents profit or loss.