Nelson Ellis and Hank Tollis are partners who share profits and losses in the ratio of 40

Question:

Nelson Ellis and Hank Tollis are partners who share profits and losses in the ratio of 40 to 60 percent, respectively. The balances of their capital accounts on December 31, 2018, are Ellis, $105,000, and Tollis, $115,000. With Tollis’s agreement, Ellis sells one-half of his interest in the partnership to Kate Cantu for $80,000 on January 1, 2019. What will the capital account balances for each of the three partners be after this sale?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...