53. A, B and C formed a partnership. They contributed P250,000 each. They also agreed on equal distribution of profit. After 5 years of operation however, C conveys her whole interest in the partnership to D, without knowledge and consent of A and B. Is the partnership dissolved? a. The partnership is not dissolved because the assignment made by C of his whole interest was without the knowledge and consent of A and B. b. The partnership was dissolved because the assignee, D automatically becomes a new partner. c. It is dissolved since C has ceased to be a partner because of the assignment of his whole interest to D. d. The partnership is not dissolved because the conveyance of a partner's interest in the partnership does not of itself dissolve the partnership.

53. A, B and C formed a partnership. They contributed P250,000 each. They also agreed on equal distribution of profit. After 5 years of operation however, C conveys her whole interest in the partnership to D, without knowledge and consent of A and B. Is the partnership dissolved? a. The partnership is not dissolved because the assignment made by C of his whole interest was without the knowledge and consent of A and B. b. The partnership was dissolved because the assignee, D automatically becomes a new partner. c. It is dissolved since C has ceased to be a partner because of the assignment of his whole interest to D. d. The partnership is not dissolved because the conveyance of a partner's interest in the partnership does not of itself dissolve the partnership.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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