Capital adjustment for unpaid goodwill on admission Steps:

• Total goodwill $48,000; P's 1/3 share =$16,000 unpaid.
• Debit P's capital $16,000 to record the implied goodwill contribution.
• Credit old partners L and M in equal sacrifice ratio (1:1): $8,000 each.
• This ensures old partners compensated for share given to P.

Why D is correct:

• Follows partnership admission rule: debit new partner's capital for unpaid goodwill share ($16,000), credit sacrificing partners equally ($8,000 each) per old ratio.

Why the others are wrong:

• A: Reverses adjustment by debiting old partners and crediting new.
• B: Contains duplicate erroneous debits to L with incomplete credits.
• C: Applies uneven debits to old partners, ignoring equal ratio.

Final answer: D