Accountancy Part ADissolution of Partnership Firm

A, B and C constituted a partnership to carry out a venture to build…

A, B and C constituted a partnership to carry out a venture to build offices for Zakash Office Sites Ltd. On the completion of venture under which way the dissolution of a firm will take place?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → On the happening of certain contingencies

A firm set up for a particular venture comes to an end by itself when that venture is completed, unless the partners agree otherwise. The completion of the venture is one of the contingencies on which a firm is dissolved.

NCERT (2026-27 edition):
Dissolution of a Firm – “… 3. On the happening of certain contingencies: Subject to contract between the partners, a firm is dissolved : (a) if constituted for a fixed term, by the expiry of that term; (b) if constituted to carry out one or more ventures, by the completion thereof; (c) by the death of a partner; (d) by the adjudication of a partner as an insolvent.”