The dissolution of Partnership may take place due to:
A. Retirement of Partner
B. Death of Partner
C. Insolvency of Partner
D. Admission of New Partner
E. Completion of Venture, if partnership formed for that purpose
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) - A, B, C, D and E only.
The dissolution of a partnership can take place in any of the following ways-
*Change in existing profit sharing ratio among partners.
*Admission of a new partner.
*Retirement of a partner.
*Death of a partner.
*Insolvency of a partner.
*Completion of the venture, if the partnership is formed for that purpose.
*Expiry of the period of partnership, if the partnership is for a specific period of time.
So, the correct answer is all of these i.e. A, B, C, D and E.