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Wrecking Company, a partnership, is operating a demolition business. Profits and losses are shared equally. The books are kept on a calendar basis. After the
- Wrecking Company, a partnership, is operating a demolition business. Profits and losses are shared equally. The books are kept on a calendar basis. After the business has been in operation for several years, Ero died on Sept. 15. After the books were closed, the partners’ capital accounts were: Bogs, P500,000; Alba, P250,000; Ero, P350,000; Paz, P250,000. Assume that Mrs. Ero is paid P500,000 for the book value of Ero’s capital account; any difference is to be allocated to the remaining partners based on ending capital balances. Bogs’ capital balance after the settlement of the deceased partner is:
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