Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

What is done with the assets of the firm at the time of dissolution of the partnership firm?

Options:

Paid off

Sold

Either option 1 or 2

None of these

Correct Answer:

Sold

Explanation:

No business is transacted after dissolution except the activities related to closing of the firm as the affairs of the firm are to be wound up by selling firm’s assets and paying its liabilities and discharging the claims of the partners.