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).
| LIST I (Events) |
LIST II (Result) |
| (A) Termination of business | (III) Dissolution of firm |
| (B) Continuation Of Business | (IV) Dissolution of partnership |
| (C) Intervention of court | (I) Not Possible In Dissolution Of Partnership |
| (D) Continuation of books of accounts | (II) Not possible in the dissolution of a firm |
(A) Termination of business-(III) Dissolution of firm.
When a firm is dissolved, the business is terminated completely.
(B) Continuation Of Business- (IV) Dissolution of partnership.
A change in partners (like retirement, death, or admission) may result in dissolution of the partnership, but not necessarily the business.
(C) Intervention of court- (I) Not Possible In Dissolution Of Partnership.
A court can dissolve a firm, but not a mere partnership change unless it affects the firm.
(D) Continuation of books of accounts- (II) Not possible in the dissolution of a firm.
When a firm is dissolved, books are closed and not continued. In contrast, books may continue if only the partnership is reconstituted.
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