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Question: A, Β and C are in partnership at Exton and Wyeton sharing profits in the ratio 4:4:2 . Their Balance Sheet at 31st December, 1962, was as follows:
C retired from the partnership on 1st January, 1963, when it was agreed that:
(a) A should take over Exton assets with the exception of a motor car of a book value of £800 which C should have and that Β take over the Wyeton assets; A and Β are to assume the Exton and Wyeton liabilities respectively;
(b) C to have £1,500 as his share of the Goodwill of the firm and to forgo any share of profit on the work-in-progress. Draw up statements to show amounts due to and by each partner in the final settlement.
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