Required: 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 the 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.
Required: 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 the 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required:
As the accountant for the
Transcribed Image Text:partners' capital accounts had credit balances as follows:
Burgos
Albao
P500,000
250,000
350,000
Cero
Pascual
250,000
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