Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter Dissolution of a Partnership Firm. This page offers a step-by-step solution to the specific question from Exercise 2, Question 1: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.
Explain the process dissolution of partnership firm?
Dissolution means breaking of relationship among the partners. As per Section 39 of the Indian Partnership Act 1932 the dissolution of firm implies that not only partnership is dissolved but the firm losses its existence i.e. after dissolution the firm does not remain in business. Dissolution of partnership firm implies discontinuation of the business of the partnership firm. Dissolution involves winding up of business disposal of assets and paying off the liabilities and distribution of any surplus or borne of loss by the partners of the firm. As per thePartnership Act 1932 a partnership firm may be dissolved in the following manners.
i) Dissolution by Agreement: As a firm is formed with the consent of all partners with a mutual agreement. Dissolution can also be there with the help of agreement. It happens in following two ways. A firm may be dissolved a When all the partners 10 agree to dissolve the firm. b When there is any term related to dissolution of firm in the partnership agreement.
ii) Compulsory Dissolution: A firm may be dissolved compulsorily in the following condition a In case all the partners or all except one partner become insolvent or insane. b If the business becomes illegal. c Where all the partners except one decide to retire from the firm. d Where all the partners except one die.
iii) Dissolution by Notice: When partnership is at will then the partnership firm
may be dissolved if any partner give notice in writing to all the other partners expressing his/her intention to dissolve the firm.
iv) Dissolution by Court: A court may order for dissolution if a suit is filed by a
partner as per Section 44 of Indian Partnership Act 1932. The court may order to
dissolve a partnership in following conditions:
a) A partner becomes insane.
b) A partner commits breach of agreement wilfully.
c) When a partner’s conduct affects the business.
d) When a partner transfers his interest to a third party.
e) If business cannot be continued.
f) If a partner becomes incapable of doing business.
g) If court thinks dissolution to be just and equitable on any ground. Besides these above mentioned circumstances a partnership firm may be dissolved if the court at any stage finds dissolution of the firm to be justified and inevitable.
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
Stay updated with our latest educational content and study tips
Online gaming has rapidly become one of the most popular pastimes among children. Whether it’s multiplayer mobile games , PC adventures or console challenges , kids are spending more time than ever in the virtual world . On the surface, gaming seems entertaining and even educational – improving hand- eye coordination , teamwork and problem […]
Read MoreKids today are surrounded by screens from the moment they wake up . Whether it’s smart classrooms, online lessons or video games with friends technology has quietly become a part of everything they do. It’s amazing how much they can learn, explore and create with just a tap or a click. But it also brings […]
Read MoreThe internet is full of entertaining apps, games and movies for kids of all ages. However not everything online is safe. Hidden among these entertaining platforms are internet frauds that target children with phony gifts, free game currencies or friendly looking people. As a parent, you may believe that scammers only target adults; yet children […]
Read MoreDid you know? The average teenager spends 7 – 8 hours daily on screens . That’s almost like working a full – time job in front of a screen – except kids aren’t earning a paycheck; instead they’re often trading sleep, focus and health for digital time. In today’s world, screens are everywhere – TV, […]
Read MoreWelcome to the NCERT Solutions for Class 12 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 2 , Question 1: Explain the process dissolution of partnership firm?....
Add Comment