In the Adel-Brick partnership, Adel and Brick had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record Colter’s admittance as a new partner. What ratio would be used to allocate, to Adel and Brick, the excess of Colter’s contribution over the amount credited to Colter’s capital account?

  1. Adel and Brick’s new relative capital ratio.
  2. Adel and Brick’s new relative profit and loss ratio.
  3. Adel and Brick’s old capital ratio.
  4. Adel and Brick’s old profit and loss ratio.