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

A. used to pay all taxes due to government
B. used to start a new partnership business by members who are willing
C. shared equally by the existing partners
D. used in paying the debts and liabilities of the firm to persons who are not partners

Correct Answer:

Option D – used in paying the debts and liabilities of the firm to persons who are not partners