Differentiate between Dissolution of Patnership and dissolution of a Patnership firm on the basis of Court's intervention?
Answers
Answer:
ACCOUNTANCY
Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of Court's intervention.
ANSWER
The difference between the Dissolution of Partnership and Dissolution of Partnership Firm is as follows:
Basis of Difference
Dissolution of Partnership
Dissolution of Partnership Firm
Meaning
It means change in the partnership deed (or the agreement) among the partners.
It means that the business is wound up and the firm is dissolved.
Discontinuation of business
It does not affect the continuation of business.
It affects the business. Firm is closed in this case.
Assets and Liabilities
Assets and liabilities are revalued. New balance sheet is prepared.
Assets are sold and realized. Liabilities are paid off.
Intervention by court
There is no intervention by the court.
Court has inherent power to intervene. By its order, a firm can be dissolved.
Economic relationship
Economic relationship among partners may remain or change.
Economic relationship among partners comes to an end.
Closure of books of accounts
No need to close account boos, as the business continues to operate.
All books of account are closed.
Hope it help you.
basis of distinction :- court's intervention
# dissolution of partnership