If at the time of a partner's admission, a positive (credit) balance in the Profit and Loss Account appears in the books, it will be transferred directly to the:

A positive balance in the Profit and Loss Account represents accumulated undistributed profits earned prior to the admission of the new partner. Since this surplus was generated during the old operational phase, it belongs entirely to the \textbf{Old Partners} and must be transferred to their capital accounts in their \textbf{Old Profit-Sharing Ratio}.