Upon the dissolution of a partnership, the Partnership Act provides that the amount realized should be?

Assessment: JAMB UTME - Principles of Accounts - 2002 Subject: Financial Accounting

Question 1 Report

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.
Read lesson note on Partnership Accounts (WAEC)
View Answer

Related Questions

1

In preparing the final accounts, the bad debt account is closed by a transfer to the?
2

Given: Stock (1/4/94) ₦800Purchases of flour ₦2450Sales ₦4745Wages of bakery staff ₦675Carriage outwards ₦50Salary of administrative staff ₦225Stock (31/3/95...
3

Use the information below to answer this question..............Total......... Dept.P.............Dept.Q ...............N...............N.................N Sa...
4

Use the information below to answer the question that follows: Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate ...
5

Use the information below to answer this question Date.............QTY. .....RATE........TOTAL ...............(Units).....N...........N January 2nd.....500.....
6

Use the information below to answer this question The partnership agreement between Abba, Baba and Kaka contains the following provision: (i) 5% interest to ...
7

Use the information below to answer this question Date.............QTY. .....RATE........TOTAL ...............(Units).....N...........N January 2nd.....500.....
8

Use the information below to answer the question that follows: Debtors ₦20 Provision for bad debts 10% Provision for discount on debtors 5% The provision for...

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning