Target Exam

CUET

Subject

Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

Which among the following are NOT the modes of dissolution of partnership (not firm)?

A. Dissolution by notice 
B. Change in profit-sharing ratio
C. Dissolution by Agreement
D. Death of partner
E. Insolvency of partner
F. Completion of venture
G. Compulsory dissolution

Choose the correct answer from the options given below.

Options:

A, C, D, G

B, D, E, F

D, F, G

A, C, G

Correct Answer:

A, C, G

Explanation:

The correct answer is option 4- A, C, G.

The question asks about dissolution of partnership which is different from dissolution of partnership firm.

A. Dissolution by notice : Incorrect. It is a mode of Dissolution of Firm and not Partnership.
B. Change in profit-sharing ratio: Correct. It is a mode of Dissolution of Partnership.
C. Dissolution by Agreement : Incorrect. It is a mode of Dissolution of Firm and not Partnership.
D. Death of partner : Correct. It is a mode of Dissolution of Partnership.
E. Insolvency of partner :Correct. It is a mode of Dissolution of Partnership.
F. Completion of venture :Correct. It is a mode of Dissolution of Partnership.
G. Compulsory dissolution :Incorrect. It is a mode of Dissolution of Firm and not Partnership.

NCERT: "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.

Dissolution of a firm takes place in any of the following ways:

1. Dissolution by Agreement

2. Compulsory Dissolution

3. On the happening of certain contingencie

4. Dissolution by Notice

5. Dissolution by Court