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3 RETIREMENT OF A PARTNER Marsha, Nancy and Ottey are in partnership sharing profits and losses equally. On December 31,2018 their Balance Sheet is as
3 RETIREMENT OF A PARTNER Marsha, Nancy and Ottey are in partnership sharing profits and losses equally. On December 31,2018 their Balance Sheet is as follows: Cost Accum. Depreciation Net Book Value Non-current Assets $ $ $ Premises 100,000 100,000 Machinery 50,000 10,000 40,000 150,000 10,000 140.000 Current assets Inventory 30,000 Receivables 20,000 Bank 5,000 55,000 Total assets 195,000 Capital accounts: Marsha Nancy Ottey 60,000 60,000 50,000 170,000 Current liabilities Payables 25,000 Total liabilities 195,000 On December 31,2018, Ottey decides to retire and Marsha and Nancy decide to continue the partnership and share profits equally, The following revaluations were agreed: Goodwill $30,000 Premises
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