Partnership

Dissolution

Easy

A firm may not be dissolved by court in the following condition :

When a partner becomes permanently incapable of performing his duties as a partner.

When a partner is guilty of misconduct which is likely to adversely affect the business of the firm.

When a partner persistently commits breach of partnership agreement.

When all the partner give their consent for dissolution.

✅ Correct Option: 4

Dissolution by the court occurs for reasons like insanity, misconduct, or persistent breach of agreement by a partner. When all partners mutually consent to dissolve, it becomes dissolution by agreement, not by court order.

2026: 24 May Shift 1

In case of dissolution, application of assets of the firm shall be applied in a particular manner and order.

Arrange the following steps in a sequence:

(A) In paying to each partner proportionately what is due to him on account of capital.

(B) The residue, if any, shall be divided among the partners in their profit sharing ratio.

(D) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital i.e. Partner's Loan

Choose the correct answer from the options given below:

2025: 15 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Compulsory Dissolution	(I) Partner becomes insane
(B) Dissolution by notice	(II) Death of a partner
(C) Dissolution by Court	(III) Business become illegal
(D) Dissolution on certain contingencies	(IV) Partnership at will

Choose the correct answer from the options given below:

2025: 22 May Shift 2

Which of the following are the ways for the dissolution of a firm?

(A) Dissolution by Notice

(B) Dissolution by agreement

(D) Dissolution by not terminating business

Choose the correct answer from the options given below:

2025: 27 May Shift 1

In the case of a dissolution of a firm, accumulated losses are transferred to:

2025: 26 May Shift 2

In the case of dissolution of firm, accumulated losses are transferred to:

2025: 29 May Shift 2

In which of the following case court can order dissolution of a partnership firm.

A firm may not be dissolved by court in the following condition :

Solution

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