If, at the time of admission of a new partner, profit and loss account appears in the books, it will be transferred to:

Any existing balance in the Profit and Loss Account (whether accumulated profit or loss) appearing in the books before the admission of a new partner belongs entirely to the old partners. It is earned or incurred during the period prior to the admission of the new partner, hence it is transferred to the Old Partners' Capital Accounts in their old profit-sharing ratio.