Dissolution of Partnership: Fill In the Blanks
At the time of admission, a partnership firm is dissolved if the business is
All the accounts are settled among partners and creditors at the time of
of a business.
Before anything else, the
of the firm will be settled out of the sources of the business.
Admission of a partner leads to the termination of the
and not the dissolution of the
A court may dissolve a firm if a partner
a suit claiming that one of the partners is of
Partners are liable to settle the accounts payable account, even from their
Funds, if they are solvent.
from the partners will be paid off before the settlement of the partners’ capital.
On dissolution, the partners’ capital balance will be paid to them
The retirement/death of a partner will not lead to dissolution if the remaining partners
to continue the firm.
If all partners mutually decide to opt for dissolution, this will dissolve the
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.