Dissolution of Partnership: Fill In the Blanks

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. At the time of admission, a partnership firm is dissolved if the business is .

2. All the accounts are settled among partners and creditors at the time of of a business.

3. Before anything else, the of the firm will be settled out of the sources of the business.

4. Admission of a partner leads to the termination of the and not the dissolution of the .

5. A court may dissolve a firm if a partner a suit claiming that one of the partners is of mind.

6. Partners are liable to settle the accounts payable account, even from their Funds, if they are solvent.

7. from the partners will be paid off before the settlement of the partners’ capital.

8. On dissolution, the partners’ capital balance will be paid to them .

9. The retirement/death of a partner will not lead to dissolution if the remaining partners to continue the firm.

10. If all partners mutually decide to opt for dissolution, this will dissolve the .

Frequently Asked Questions

What is the process of admitting a new partner into an accounting firm?

The process of admitting a new partner into an accounting firm can vary depending on the firm’s policies and procedures. Typically, the process will involve a review by the firm’s partners of the prospective partner’s qualifications and experience, as well as a vote by the partners on whether to admit the new partner. The new partner may also be required to sign an agreement with the firm setting out the terms of their Partnership.

What is the role of a partner in an accounting firm?

There are no specific qualifications for admission as a partner in an accounting firm. However, the prospective partner will typically need to be qualified as an accountant and have experience in accounting.

What is the role of a partner in an accounting firm?

What is the role of a partner in an accounting firm?

Can a person who is not a qualified accountant become a partner in an accounting firm?

A person who is not a qualified accountant can become a partner in an accounting firm, but they will not be able to practice as an accountant. Partners in accounting firms must be qualified accountants.

What is the process for withdrawing from the Partnership in an accounting firm?

The process for withdrawing from the Partnership in an accounting firm can vary depending on the firm’s policies and procedures. Typically, the process will involve a review by the firm’s partners of the departing partner’s qualifications and experience, as well as a vote by the partners on whether to accept the departure. The departing partner may also be required to sign an agreement with the firm setting out the terms of their departure.

True Tamplin, BSc, CEPF®

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®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, 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.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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