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. X and Y decided to write-off goodwill. The credit balances in the

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