Find what are the capital balances of reyes and suarez

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Problem 1: Perez, Reyes, and Suarez were partners with capital balances on January 1, 2015 of P100,000, P150,000, and P200,000, respectively. Their profit and loss ratio is 5:3:2. On July 1, 2015, Perez retires from the partnership. On that date of retirement, the partnership net income is P140,000 and the partners agreed that inventories are to be revalued at P70,000 from its original cost of P50,000. The partners agreed further to pay Perez P195,000 in settlement of his interest. What are the capital balances of Reyes and Suarez after the retirement of Perez?

A. P 189,000; P 226,000

B. P 198,000; P 232,000

C. P 207,000; P 238,000

D. P 220,000; P 226,000

Reference no: EM132770359

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