Question 2 - CBSE Class 12 Sample Paper for 2022 Boards [Term 2] - Accounts - Solutions to CBSE Sample Paper - Accounts Class 12

Last updated at April 16, 2024 by

Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ based on:

(i) Settlement of assets and liabilities

(ii) Economic relationship

 

Answer

        BASIS OF DISTINCTION     DISSOLUTION OF PARTNERSHIP                DISSOLUTION OF PARTNERSHIP FIRM
Settlement of Assets and Liabilities Assets are revalued and liabilities are reassessed

Assets are sold and Liabilities are paid off

The balance if any, is distributed among all the partners

Economic relationship Economic relationship between the partners ends Economic relationship between the partners changes

Transcript

Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ based on: (i) Settlement of assets and liabilities (ii) Economic relationship Answer BASIS OF DISTINCTION DISSOLUTION OF PARTNERSHIP DISSOLUTION OF PARTNERSHIP FIRM Settlement of Assets and Liabilities Assets are revalued and liabilities are reassessed Assets are sold and Liabilities are paid off The balance if any, is distributed among all the partners Economic relationship Economic relationship between the partners ends Economic relationship between the partners changes

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CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo