SOLUTION The claim of the partner against the firm is increased by the amount of liability assumed.
SOLUTION (i) Persistent breach of agreement by a partner.(ii) Insanity of a partner.(iii) Permanent incapacity of a partner.
SOLUTION (i) Persistent breach of agreement by a partner.(ii) Insanity of a partner.(iii) Permanent incapacity of a partner.
SOLUTION A firm is compulsorily dissolved in the following cases:(i) When all the partners or all the partners except one become insolvent.(ii) When the business of the firm becomes illegal.
SOLUTION BasisDissolution of PartnershipDissolution of Partnership FirmEconomic RelationshipEconomic Relationship between the Partners change.Economic Relationship between the partners comes to an end.
SOLUTION BasisDissolution of PartnershipDissolution of Partnership FirmSettlement of Assets and LiabilitiesAssets are revalued and liabilities are reassessed.All the Assets other than cash are realised and liabilities are paid.
SOLUTION BasisDissolution of PartnershipDissolution of Partnership FirmCourts InterventionCourt does not intervene because Partnership is dissolved by mutual Agreement.A firm may be dissolved by court order
SOLUTION BasisDissolution of PartnershipDissolution of Partnership FirmClosure of BooksIt does not require closure of books of account because the business is not closedBooks of accounts are closed as the business…
SOLUTION (iii) for the debts of the firm to the third parties;(i) to each partner proportionately what is due to him/her from the firm for advances as distinguished from capital…