Match List-I with List-II List-

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Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Financial Statements of a Company

Question:

Match List-I with List-II

List-I	List-II
(A) Dissolution of firm by agreement	(I) When a partner becomes insane
(B) Compulsory dissolution of firm	(II) With the consent of all partners
(C) Dissolution of firm by notice.	(III) When business of a firm becomes illegal
(D) Dissolution of firm by Court	(IV) At the request of any one partner

Choose the correct answer from the options given below:

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is Option (2) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

List-I	Correct Match	Reason
(A) Dissolution of firm by agreement	(II) With the consent of all partners	A firm may be dissolved by mutual consent or agreement of all partners (Section 40, Indian Partnership Act).
(B) Compulsory dissolution of firm	(III) When business of a firm becomes illegal	Dissolution becomes compulsory when the firm’s business becomes unlawful or illegal (Section 41).
(C) Dissolution of firm by notice	(IV) At the request of any one partner	In a partnership at will, any partner may dissolve the firm by giving notice to the others (Section 43).
(D) Dissolution of firm by Court	(I) When a partner becomes insane	The Court may order dissolution when a partner becomes of unsound mind or permanently incapable (Section 44).