Wright retires from the partnership of Zhang, Lee, and Wright. The partners share profits and losses in the ratio of 3:2:5, respectively. Wright's capital balance is $32,000, and he receives $37,000 in final settlement. What is the effect on the capital accounts of Zhang and Lee?

Answer rating: 100% (QA)

When Wright retires from the partnership his capital account will be closed and the remaining partne... View the full answer