Reference no: EM132735603

Question: X, Y, and Z are partners dividing profits and losses in the ratio of 5:3:2 and whose capital balances as of January 1, 2013 were P600,000, P400,000, and P300,000, respectively. Z is retiring from the partnership as of July 1, 2013. The partnership agreement provides that the books of accounts need not be closed upon the retirement of a partner. Net income is to be considered as having been realized proportionately during the period. The partnership estimated net income for 2013, P480,000. Prior to her retirement, Z paid personal expenses of P15,000 from the partnership funds. The partnership, on the other hand, collected P50,000 from personal receivable of Z and deposited the same for the account of the partnership. How much is the total amount due to Z as of the date of retirement?