distinguish between the recontition of partner and dissolution of partnership Firm on the basis of closure of account
Answers
Answer:
Dissolution of partnership implies a change in the existing relationship of partners through reconstitution of the firm without affecting the entity of the firm. In other words, the firm continues to function as ever before but only the economic basis of relationship of the partners is reconstituted
Answer:
see I am writing full difference I hope it will help you a lot
reconstitution of partnership firm means change in relationship amongst partners but firm continues, it is also called as dissolution of partnership
dissolution of partnership firm means discontinuing the firm ,
on the basis of closure of accounts :->
under reconstitution :- revaluation account, partners capital account and balance sheet is prepared
under dissolution :- realisation account, partners capital account and cash account is prepared
on the basis of relationship :-
partners may change their ratios in reconstitution while in dissolution there is no change in ratios of partners