Dissolution of Partnership Firm
Dissolution of Partnership Firm identifies the distinction in the breaking of the association between all the partners of an enterprise and between a few partners; and it is the breaking or adjournment of the association between the partners which is known as the dissolution of partnership firm. This puts an end to the presence of an enterprise and no business concern is carried out after the dissolution apart from the pursuits associated with winding up of the enterprise as the financial affairs of the enterprise are to be affected by selling enterprise’s assets.
When the current partnership is dissolved, the enterprise may go on under the same name if the partners determine. To put it in other words, it outcomes in the dissolution of a partnership however, not that of the enterprise. Section 39 of the partnership Act 1932 says, the dissolution of a partnership between all the partners of an enterprise is known as the dissolution of the firm.
Let us now understand each concept of Dissolution of Partnership Firm in detail:
- Dissolution of Partnership
- Dissolution of a Firm
- What are the Differences between Dissolution of Partnership and Dissolution of Firm?
- Settlement of Accounts
- Accounting Treatment
The above mentioned is the concept that is explained in detail about the Dissolution of Partnership Firm for the class 12 Commerce students. To know more, stay tuned to BYJU’S.
|Multiple Choice Questions|
|Q.1-Under dissolution of the partnership, the firm’s business:|
|Q.2- Dissolution of firm necessarily means dissolution of :|
|Q.3- If any surplus is available then it is distributed among the partners in :|
|a. Gaining ratio
b. Sacrificing ratio
c. Profit sharing ratio
d. Old ratio
|Q.4- Share of a concerned partner in excess of the firm’s property over the firm’s debts can be used to pay ___________:|
|a. Private debts
b. Third party debts
c. Neither (a) nor (b)
d. Second party debts
|1-a, 2-d, 3-c, 4-a|