DD, EP. and FF decided to dissolve the partnership on July 31, 2021. Their capital balances and profit ratio on this date follow: DD, 33,600 (45%);   EE, 43,200 (25%.);   FF, 19,200 (30%), The net income from January 1 to luly 31, 2021 was P7,200. Also, on this date cash and liabilities were 25,200 and 34,800 respectively. FF received 24,960 In full settlement of his interest. 12. Which of the following statements is true? a. 115,200 was realized from sale of NCA b. DD recieved 42,240 in full settlement of his interest. c. 124,800 was the total distribution to outsiders and the partners. d. EE's share in the loss on realization was 3,000.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 49P
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DD, EP. and FF decided to dissolve the partnership on July 31, 2021. Their capital balances and profit ratio on this date follow: DD, 33,600 (45%);   EE, 43,200 (25%.);   FF, 19,200 (30%), The net income from January 1 to luly 31, 2021 was P7,200. Also, on this date cash and liabilities were 25,200 and 34,800 respectively. FF received 24,960 In full settlement of his interest.

12. Which of the following statements is true?

a. 115,200 was realized from sale of NCA

b. DD recieved 42,240 in full settlement of his interest.

c. 124,800 was the total distribution to outsiders and the partners.

d. EE's share in the loss on realization was 3,000.

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