Question

In which of the following cases, a partnership firm may be dissolved?
X. On the death of a partner.
Y. On the insolvency of a partner.
Z. On the retirement of a partner.
Which of the following is/are the correct options?

• A. X and Y
• B. X and ?
• C. Y and Z
• D. X, Y and Z

Answer 1

The correct option is D X, Y and Z

An existing partnership may get be dissolved,all due to the reasons:

Death of the partner : death may be the reason for dissoultion of the firm as the partners have interset in each other.

Insolvency of the partner : Due to bankrupcty or insolvency the partner ma not be able to bear losses and liablity is more than the assets in the partnership may lead to dissolution of partnership of the firm.

On retirement of a partner : On retirement of the partner the partnership the partnership firm gets dissolved to form new partnership deed and form new partnership.