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Capital accounts for 1 January 2015 until 2 January 2017.

Adam, Ben and Cork are equal partners. The capital accounts balances on 1 January 2015 were: Adam $12000 $10000 Cork $8000 Ben No separate current accounts are kept and accounts are closed on 31st December each year. On 30 June 2015, Cork retired from the partnership. Adam and Ben agreed to continue to be equal partners. It was also agreed among the partners that Cork will be paid the balance of his capital account on 31 December 2015. Goodwill was valued at $9000 and certain fixed assets were revalued by $3000 above the book value. It was agreed to make all adjustments for goodwill and revaluation of assets in capital accounts only. The net profit for the year ended 31 December 2015 was $18000 and was earned uniformly throughout the year. Drawings during the year 2015 were: Adam $1500 $1000 Cork $500 Ben partner. He paid in $7000 cash as capital together On 1 January 2016, Dan was admitted as a with $3000 for his share of partnership goodwill. The new profit sharing ratio was: Adam 2/5 2/5 Ben Cork 1/5 Net loss for the year 2016 was $5000 and each partner withdrew $500 during the year. On 2 Jan 2017, the partnership was dissolved and the net assets were sold for $ 40,000. Required: Adam, Ben and Cork are equal partners. The capital accounts balances on 1 January 2015 were: Adam $12000 $10000 Cork $8000 Ben No separate current accounts are kept and accounts are closed on 31st December each year. On 30 June 2015, Cork retired from the partnership. Adam and Ben agreed to continue to be equal partners. It was also agreed among the partners that Cork will be paid the balance of his capital account on 31 December 2015. Goodwill was valued at $9000 and certain fixed assets were revalued by $3000 above the book value. It was agreed to make all adjustments for goodwill and revaluation of assets in capital accounts only. The net profit for the year ended 31 December 2015 was $18000 and was earned uniformly throughout the year. Drawings during the year 2015 were: Adam $1500 $1000 Cork $500 Ben partner. He paid in $7000 cash as capital together On 1 January 2016, Dan was admitted as a with $3000 for his share of partnership goodwill. The new profit sharing ratio was: Adam 2/5 2/5 Ben Cork 1/5 Net loss for the year 2016 was $5000 and each partner withdrew $500 during the year. On 2 Jan 2017, the partnership was dissolved and the net assets were sold for $ 40,000. Required

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