Question

Report on procedure of winding up partnership firm

Answer 1

Winding up depends on the agreement that is contained in the partnership agreement deed. And they include, if one of the partners dies, voluntarily leaves, is forced out.Once any of the three things happened, an exception of death the partnership is considered to have dissolved.Assets are distributed according to their respective shares or agreement made earlier.Losses are shared equallyBut on the death, remaining partners could reform a new partnership. The executor of the deceased partner is entitled to his shares