Match the following with the section in which they are defined in the India Partnership Act,1932.

Choose the correct answer from the options given below.

A-III, B- IV, C-II, D-I

The correct answer is option 2- A-III, B- IV, C-II, D-I.

* Settlement of Accounts- 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.

* Meaning of Dissolution of the firm- According to Section 39 of the partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm.

* Definition of partnership- Section 4 of the Indian Partnership Act 1932 defines partnership as the ‘relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all’.

* Rules for Private Debts and Firm’s Debts- Private Debts and Firm’s Debts: Where both the debts of the firm and private debts of a partner co-exist, the following rules, as stated in Section 49 of the Act, shall apply.