CUET Preparation Today
What activities are carried out after the dissolution of a partnership firm? |
The firm's assets are sold, and the proceeds are distributed among the partners. The firm continues its business operations with the remaining partners. New partners are admitted to the firm to replace the retiring or deceased partner. No business transactions take place, and the firm's affairs are closed by settling liabilities and claims. |
No business transactions take place, and the firm's affairs are closed by settling liabilities and claims. |
The correct answer is option 4- No business transactions take place, and the firm's affairs are closed by settling liabilities and claims. After the dissolution of a partnership firm, the primary focus is on winding up the affairs of the firm. This involves several activities like: Settling liabilities and claims: The partners need to settle any outstanding debts, loans, or obligations of the firm. This includes paying off creditors, suppliers, and any other parties with legitimate claims against the firm. Closing the firm's accounts: The firm's financial accounts are closed at last by making the bank account or cash account which shows zero balance. |
