The Total solution for NCERT class 6-12
Basis of Comparison
Dissolution of Partnership
Dissolution of Partnership firm
Meaning
It refers to the stage where a partner/partners discontinue their relationship with the firm.
It refers to the situation that all the relation between a firm and its partners cease to exit
Discontinuation
Business continues as usual
Discontinuation of business due to dissolving of firm
Accounts
Revaluation account is created
Realization account is created
Liabilities and assets
Revaluation is done
Sold off to pay for the liabilities
Economic Relationship
Continues
It comes to an end
Nature
Such type of event is voluntary in nature
It can be sometimes compulsory and sometimes voluntary
Effect
Firm is not dissolved
Both firm and partnership are dissolved