The Question : Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ based on: (i) Settlement of assets and liabilities (ii) Economic relationship
Solution for the question :
Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ -Basis of Distinction Dissolution of PartnershipDissolution of Partnership FirmSettlement of Assets and LiabilitiesAssets are revalued and liabilities are reassessed.Assets are sold and liabilities are paid off.Economic relationshipEconomic relationship between the partners continues, though in a changed form.Economic relationship between the partners comes to an end.
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