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Exercise 1 Worksheet: Partnership Operations
The balance sheet shown below is that of a partnership of attorneys.
Cash and current assets		$60,000	Liabilities	$80,000	This cell intentionally left blank.
Land		$360,000	L, capital	$40,000	This cell intentionally left blank.
Building and equipment (net)		$200,000	M, capital	$80,000	This cell intentionally left blank.
No data		No data	N, capital	$180,000	This cell intentionally left blank.
No data		No data	O, capital	$240,000	This cell intentionally left blank.
Totals		$620,000	Totals	$620,000	This cell intentionally left blank.
Calculate partnership capital balances in the situation described below.
N withdraws from the partnership. According to the original partnership agreement, N is to receive 125% of his final capital balance, in cash. Goodwill or other asset revaluation will not be recognized. Profits and losses are shared equally by all partners. Determine the remaining partners capital balances after N withdraws. Use the space provided below for your calculations.
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Capital Balances		L	M	N	O	This cell intentionally left blank.
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