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Lane Stevens is to retire trom the partnership of Stevens and Associates as of March...

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Accounting

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Lane Stevens is to retire trom the partnership of Stevens and Associates as of March 31, the end of the current fiscal year. After closing the accounts, the capital balances of the partners are as follows: Lane Stevens, \$146,350; Cherrie Ford, \$67,610; and LaMarcus Rollins, \$61,360. They have shared net income and net losses in the ratio of 32.2 . The partners agree that the merchandise inwentory should be increased by $15,580, and the allowanco for doubtul accounts should be increased by $1,510. Stevens agrees to accept a note for $103,000 in partial settiement of his ownership equity. The remainder of his claim is to be paid in cash. Ford and Rollins are to share equaly in the net income or net loss of the new partnership

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