X & Y were partners in the firm sharing profits and losses in the ratio of 4 : 3. Z is admitted for a 1/3rd share in the profits. On the date of Z's admission, the Balance Sheet of X and Y showed a Balance of Rs. 4,200 in Profit and Loss Account shown on the Assets side of Balance Sheet and a General Reserve of Rs. 42,000. The final effect on X's Capital A/c will be ________.

The accumulated profits and losses must be distributed to the old partners in their original profit sharing ratio of 4 : 3 before the new partner is admitted. The sum of the distributable items is a Rs. 42,000 general reserve minus a Rs. 4,200 debit balance, resulting in a net credit of Rs. 37,800. X's share of this amount is calculated as 4/7 of Rs. 37,800, which equals Rs. 21,600. This distribution results in an increase of Rs. 21,600 to X's capital account.

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