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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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