No adjustments to old partners' capitals for unrecorded revaluation and goodwill Steps:

• Note original capitals: V $80,000, E$40,000, shared equally.
• Revalue non-current assets downward by $20,000, but this is taken into account only for Z's admission, not recorded in books.
• Value goodwill at $80,000, explicitly not recorded in books after admission.
• Admit Z with new profit-sharing ratio 40:30:30; E's capital unchanged as no entries affect old accounts.

Why B is correct:

• In partnership admission, if revaluation and goodwill are valued but not recorded in books, existing partners' capitals remain at original balances per accounting standards.

Why the others are wrong:

• A. Assumes revaluation loss shared equally ($10,000 debit to E), but not recorded.
• C. No calculation yields $10,000 credit to E.
• D. No basis; possibly misapplies total revalued assets to E alone.

Final answer: B