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What do you mean by Dissolution of Partnership Firm ? Differentiate between Dissolution of Partnership and Dissolution of Partnership Firm. |
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Answer» Dissolution means Discontinuance of Existing relationship among the Partners. According to Section 39 of the Indian Partnership Act, 1932, “Dissolution of the firm means dissolution of partnership among all the partners in the firm.” Dissolution of the firm means that the business is discontinued and the firm is wound up, i.e., dissolved. When the firm is dissolved, all assets are realized and liabilities are paid. The balance is paid to the partners in settlement of their Accounts. DISTINCTION BETWEEN DISSOLUTION OF PARTNERSHIP AND PARTNERSHIP FIRM
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