Question : Which of the following statement is in correct with respect of adjustment of capitals?

Option 1: Ascertain Adjusted Capital of remaining partners (after all adjustments).

Option 2: Calculate Proportionate Capital of remaining partners on the basis of total capital of the new firm and new profit-sharing ratio

Option 3: Find Surplus Capital/Deficit Capital of each continuing partner by comparing Proportionate Capital and Present Adjusted Capital.
Surplus Capital: When Present Adjusted Capital is more than the proportionate Capital.
Deficit Capital: When Present Adjusted Capital is less than the Proportionate Capital.

Option 4: All of the above