Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Which of the following is NOT a mode of dissolution of a partnership?

Options:

Change in profit sharing ratio

Admission of a new partner

Introduction of a new business line

Retirement of a partner

Correct Answer:

Introduction of a new business line

Explanation:

The correct answer is option 3- Introduction of a new business line.

* Introduction of a new business line is not a mode of dissolution of partnership.

The dissolution of a partnership can take place in any of the following ways:
*Change in existing profit sharing ratio among partners.
*Admission of a new partner.
*Retirement of a partner.
*Death of a partner.
*Insolvency of a partner.
*Completion of the venture, if the partnership is formed for that purpose.
*Expiry of the period of partnership, if the partnership is for a specific period of time.