Class 12 Accountancy Dissolution of Partnership firm notes
Dissolution of Partnership firm. ... Short & Easy Notes for Board Exam #1. What do you mean by dissolution of partnership firm? Write the circumstances of dissolution? => Any change in the relation among the partners is called dissolution of partnership. In case of dissolution of partnership, the firm constituted in reconstituted firm. Dissolution of firm means termination of the business of the firm. Where all the partners break the relationship with the firm and the firm totally closed down. Dissolution of the firm means; i. Termination of the firm business. ii. Disposal of the assets and liabilities to the third party creditors. iii. Distribution of remaining cash between the partners. Circumstances of dissolution; i. When all partners are agree for dissolution. ii. When all the partner except one become in solvent. iii. When business of the firm becomes unlawful. iv. In case of partnership at-will, any partner can dissolve the ...