Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of Court's intervention.
The difference between the Dissolution of Partnership
and Dissolution of Partnership Firm is as follows:
Basis of Difference
Dissolution of Partnership
Dissolution of Partnership Firm
Meaning
It
means change in the partnership deed (or the agreement) among the partners.
It
means that the business is wound up and the firm is dissolved.
Discontinuation
of business
It
does not affect the continuation of business.
It
affects the business. Firm is closed in this case.
Assets
and Liabilities
Assets
and liabilities are revalued. New balance sheet is prepared.
Assets
are sold and realized. Liabilities are paid off.
Intervention
by court
There
is no intervention by the court.
Court
has inherent power to intervene. By its order, a firm can be dissolved.
Economic
relationship
Economic
relationship among partners may remain or change.
Economic
relationship among partners comes to an end.
Closure
of books of accounts
No
need to close account boos, as the business continues to operate.
All
books of account are closed.
The difference between the Dissolution of Partnership and Dissolution of Partnership Firm is as follows:
|
Basis of Difference |
Dissolution of Partnership |
Dissolution of Partnership Firm |
|
Meaning |
It means change in the partnership deed (or the agreement) among the partners. |
It means that the business is wound up and the firm is dissolved. |
|
Discontinuation of business |
It does not affect the continuation of business. |
It affects the business. Firm is closed in this case. |
|
Assets and Liabilities |
Assets and liabilities are revalued. New balance sheet is prepared. |
Assets are sold and realized. Liabilities are paid off. |
|
Intervention by court |
There is no intervention by the court. |
Court has inherent power to intervene. By its order, a firm can be dissolved. |
|
Economic relationship |
Economic relationship among partners may remain or change. |
Economic relationship among partners comes to an end. |
|
Closure of books of accounts |
No need to close account boos, as the business continues to operate. |
All books of account are closed. |
