Partnership

Dissolution

Easy

common

Dissolution of a Firm means:

Economic relationship between partners changes

Economic relationship between partners does not change

Business is not terminated

Economic relationship between partners comes to an end

✅ Correct Option: 4

Dissolution of a firm dissolves the partnership among all partners: the business is closed, assets realised, liabilities paid, and the economic relationship between the partners ends. Where the relationship merely changes and the business continues, it is dissolution of partnership, i.e. reconstitution, not dissolution of the firm.

2025: 29 May Shift 2

Stock at the time of dissolution was appearing in books at Rs 50,000. Half of the stock was sold at a discount of 20% and the remaining was taken over by one of the partners at a 10% discount. What amount was received in cash at the time of realization of stock.

2025: 3 June Shift 2

According to Section ______ of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

2025: 26 May Shift 2

Which of the following statements are true:

(A) Dissolution of a partnership is different from dissolution of a firm.

(B) A partnership is dissolved when there is a death of a partner.

(D) A firm is compulsorily dissolved when a partner decide to retire.

Choose the correct answer from the options given below:

2023: 20 June Shift 2

Select out of the following that is not considered as one of the modes of reconstitution of a partnership firm.

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) At the time of dissolution, unrecorded assets when taken over by a partner are shown in	(I) Debit of Realisation Account
(B) At the time of dissolution, unrecorded liabilities when paid are shown in	(II) Credit of Partners' capital Account
(C) At the time of admission of a partner, General Reserve will be shown in	(III) Debit of Partners' capital Account
(D) At the time of admission of a partner, Debit balance of Profit & Loss A/c will be shown in	(IV) Credit of Realisation Account

Choose the correct answer from the options given below:

2026: 20 May Shift 1

A, B and C constituted a partnership to carry out a venture to build offices for Zakash Office Sites Ltd. On the completion of venture under which way the dissolution of a firm will takes place?

Dissolution of a Firm means:

Solution

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