Accountancy Part ADissolution of Partnership Firm

When a firm is dissolved with the consent of all the partners, it is…

When a firm is dissolved with the consent of all the partners, it is called:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Dissolution by Agreement

NCERT (2026-27 edition):
Dissolution of a Firm – “… 1. Dissolution by Agreement: A firm is dissolved : (a) with the consent of all the partners or (b) in accordance with a contract between the partners.”