Explain the process dissolution of partnership firm?

Explanation

Dissolution of a partnership firm ends up in the business being interrupted. Dissolution consists of disposing off assets, clearing payment for liabilities and distributing the profit or loss among all partners.



A firm could also be dissolved by the subsequent ways:


1. Dissolution by agreement which might be with consent of all partners or a contract between all partners.


2. Dissolution that becomes mandatory once all partners become insolvent or any changes in government policies creating the business ineligible.


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