Thank You In Advance

SCORE: N NAME: PROFESSOR: SE SECTION: pro Problem #22 Inc Death of a Partner Burgos and Albao Wrecking Company, a partnership, is operating a general demolition The business. Profits and losses are shared equally. The books are kept on a calendar basis Ga After the business has been in operation for several years, Cero died on Sept. 15. Mrs. Cero desired to sell Cero's interest for P250,000. After the books were closed, the partners' capital accounts had credit balances as follows: Burgos P500,000 Albao 250,000 Cero 350,000 Pascual 250,000 Required: 1. As the accountant for the partnership, compute the amount to be paid to Mrs. Cero under the agreement and prepare the journal entry required to enter the check issued to her in payment of her deceased husband's interest in the partnership. According to the partnership agreement, the difference between the amount paid to Mrs. Cero and the book value of Cero's capital account is allocated to the remaining partners based on their ending capital balances. 2. Assume instead that Mrs. Cero is paid P500,000 for the book value of Cero's capital account; any difference is to be allocated based on ending capital balances. Prepare the necessary journal entry. 3. Assume further that one of the partners, Pascual, with the consent of the remaining partners, purchased Cero's interest for P400,000 and gave Mrs. Cero a personal check for that amount. Prepare the journal entry that is required in the books of account of the partnership only