Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:
Retirement or death of a partner will create a situation for the continuing partners, which is known as?
Options:
Dissolution of partnership
Dissolution of partnership firm
Winding up of business
Both dissolution of firm as well as dissolution of partnership
Correct Answer:
Dissolution of partnership
Explanation:
Admission, Retirement or Death of a partner leads to the dissolution of the partnership and a new partnership takes its place.