Meir, Zarcus, and Ross are partners and share income and loss in a 1:4:5 ratio. The partnership's capital balances are as follows: Meir, $43,000; Zarcus, $179,000; and Ross, $228,000. Zarcus decides to withdraw from the partnership, and the partners agree to not have the assets revalued upon Zarcus's retirement.

Zarcus is paid $217,000 in partnership cash for her equity. What are Meir and Ross capital?

Zarcus is paid more than her capital balance of 179,000. The difference must be her share of goodill in the firm. Based on this increase which is 4/10ths of the total, you now need to calculate the amounts for 1/10th and 5/10ths.