Profit and Loss debit balance ₹60000 was shared equally among three including the new partner. In the correct treatment what should be the new partner's share?

Correct answer: Zero

The correct answer is Option A, Zero. The debit balance of the Profit and Loss Account is an old loss of ₹60,000. It belongs to the period before the new partner joined. Accounting fairness requires the old partners to bear this loss in their old ratio, because they were the partners who earned or incurred results during that earlier period. The incoming partner has no responsibility for a past debit balance. Option A is therefore correct: the new partner's share is ₹0. Option B, ₹20,000, is obtained by dividing ₹60,000 equally among three, but that ignores the date of admission and wrongly charges an old loss to the new partner. Option C, ₹30,000, is neither the equal one-third share nor a valid treatment. Option D, ₹60,000, would transfer the entire past loss to the incoming partner and is completely unjustified. The amount of the loss does not change the rule; whether it is ₹60,000 or another amount, the new partner bears zero of a pre-admission loss. Exam cue: first identify when the loss arose, then decide who was a partner at that time.