The dissolution of a Partnership firm means termination of the relationship between the partners but when there is the termination of the relationship between all partners then this situation is known as a Dissolution of Firm.
Meaning of Dissolution of a Partnership Firm: –
Dissolution of Partnership Firm means the discontinuation of the operation of the firm or Closing down or wound up the operation of the Partnership Firm. In this situation, all assets of the firm will be sold, all liabilities paid off and the balance of capital and current account will be adjusted with the available cash balance(if any).
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.”
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Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm) – USHA Publication Class +2 – Solution
Question wise solution of the all Questions of Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm) – USHA Publication Class +2 – Solutions are shown below: –