Meena and Tina are partners in a firm and share profit as 3:2. They decided to dissolve their firm on March 31, 2017, when their Balance Sheet was as follows: Balance Sheet Meena and Tina as of March 31,2017
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Which mode of dissolution is highlighted in the above case? |
Compulsory Dissolution Dissolution by agreement Dissolution by court Dissolution on happening of contingencies |
Dissolution by agreement |
A partnership firm can be dissolved by various ways like Dissolution by Agreement, compulsory dissolution, dissolution by court etc. A firm is dissolved by agreement when it is dissolved (a) with the consent of all the partners or (b) in accordance with a contract between the partners. Here partners agreed to dissolve the firm by their own will so it is dissolution by agreement. |