Practicing Success
At the time of dissolution of partnership firm, first of all......... are settled. |
Assets Capital A/c of partners Losses All of these |
Losses |
In case of dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. For this purpose, it disposes off all its assets for satisfying all the claims against it. In this context it should be noted that, subject to agreement among the partners, the following rules as provided in Section 48 of the Partnership Act 1932 shall apply. |