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    keb121's Avatar
    keb121 Posts: 1, Reputation: 1
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    #1

    Jan 29, 2012, 08:01 PM
    Accounting homework
    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?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    Jan 30, 2012, 04:26 AM
    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.
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