The partners of XYZ

Partnership share profits and losses in the ratio X: 30% Y 30% and Z 40%. The

capital credit balances of the partners as at 1 January 2022 are: X=$30,000  Y=$30,000 Z=$40,000 and current account

credit balances are: X= $4,000 Y=$3,000 Z=2,000. 1 January 2022, Z withdraws

from the partnership and X and Y agree to continue with the partnership sharing

profits and losses in the ratio X: 50% and Y 50%. Upon Z’s withdrawal from the

partnership, the assets of the partnership were revalued resulting in a net

credit balance of $20,000 in the revaluation account. Goodwill amounting to

$30,000 is to be recorded in the books on the day Z retires. The credit balances

in the capital accounts of X and Y in the new partnership are: