Upon the dissolution of a partnership, the Partnership Act provides that the amount realized should be?
Answer Details
When a partnership is dissolved, the amount realized from the sale of the partnership's assets is used to pay off any debts and liabilities owed by the partnership to third parties (i.e., persons who are not partners). This is done before any distribution of the remaining proceeds to the partners. Therefore, option D is the correct answer. The remaining proceeds will then be distributed among the partners in accordance with the partnership agreement or, if there is no agreement, equally among them.