Match List-I with List-II.
| LIST I (Events) |
LIST II (Result) |
| (A) Termination of business | (I) Not Possible In Dissolution Of Partnership |
| (B) Continuation Of Business | (II) Not possible in the dissolution of a firm |
| (C) Intervention of court | (III) Dissolution of firm |
| (D) Continuation of books of accounts | (IV) Dissolution of partnership |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
A dissolution of partnership only changes the agreement between the partners; the firm and its business go on. A dissolution of the firm ends the relationship between all the partners, and the business is closed.
(A) Termination of business — this matches (III) Dissolution of firm. On the dissolution of the firm the business of the firm is closed.
(B) Continuation Of Business — this matches (IV) Dissolution of partnership. When only the partnership is dissolved, the business is not terminated; it goes on under the reconstituted firm.
(C) Intervention of court — this matches (I) Not Possible In Dissolution Of Partnership. A partnership is dissolved by mutual agreement, so the court does not intervene; it is a firm that can be dissolved by the court’s order.
(D) Continuation of books of accounts — this matches (II) Not possible in the dissolution of a firm. On the dissolution of the firm the books of account are closed, so they cannot continue.
Note: In the original question, both Option (1) and Option (4) were correct as per the NTA Answer Key. The paper printed Option (1) as (A)-(I), (B)-(II), (C)-(III), (D)-(IV) and Option (4) as (A)-(III), (B)-(IV), (C)-(I), (D)-(II). For the benefit of students and to ensure a single answer, Option (1) has been changed to (A)-(II), (B)-(I), (C)-(IV), (D)-(III).
NCERT (2026-27 edition):
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