--%>
Assignment Help - homework help

Explain Dissolution

1) Dissolution ENDS the partnership.

a) Action of the parties:

• By the expiration of a fixed term;
• If entered into for a single undertaking, and the completion of the undertaking;
• By a partner giving notice where no time is
specified.

b) Operation of law:

• By a partner giving notice;
• Death or bankrupt.

c) Illegality:

2) A partner may apply to the court to have the partnership dissolved on the grounds of:

  • Insanity of a partner;
  • Permanent incapacity;
  • Conduct of a partner detrimental to the interests of the
  • partnership;
  • Wilful or persistent breach of partnership
  • agreement;
  • Where the partnership can merely be carried on at a loss; and
  • Where the court considers it mere and equitable.

3) Each partner is entitled to a proportionate return of their contribution to capital before distribution.

4) If the partnership is being dissolved because of death, insolvency or bankruptcy, it is necessary to differentiate between partnership property and private property to determine the rights of the different groups of creditors.

   Related Questions in Managerial Accounting

  • Q : Why you want to be an accountant Why

    Why you want to be an accountant? Normal 0 false

  • Q : Calculating the Operating Cost &

    1.   HulaHug Corp., which manufactures hula hoops, currently has two product lines, the Roundabout and the Sassafras. HulaHug has total overhead of $124,478. HulaHug has identified the following information about its overhead activity pools and the two

    		•
  • Q : Main working areas of the Routing and

    Write a short note on the main working areas of the Routing and personnel department?

    		•
  • Q : Functions explain how the provision of

    explain how the provision of management accounting information can assist the management of a company with planning, controlling, decision making and communicating

    		•
  • Q : Why wealth creation is a longer-term

    Write a short note on why wealth creation is a longer-term concept?

    		•
  • Q : Balloon payment The final payment in a

    The final payment in a partially amortized loan. The balloon payment repay the entire remaining principal and is usually larger than previous payments on the loan. Loan that is set up with balloon payments allow the borrower to make the purchase and have a lower payme

    		•
  • Q : Define Variance Variance : The rate,

    Variance: The rate, amount, extent, or degree of change, or the divergence from a preferred state or characteristic.

    		•
  • Q : Management accounting and financial

    What does the difference between management accounting and financial accounting suggest?

    		•
  • Q : Define Employee Stock Ownership

    Employee Stock Ownership: It is a qualified, defined contribution, employee benefit (that is, ERISA) plan designed to invest mainly in the stock of sponsoring employer. ESOPs are "qualified" in the logic that the ESOP's sponsoring company, the selling

    		•
  • Q : Reasons for favoring partnership deed

    Give reasons in favor of having a partnership deed. Answer: A) In situation of any dispute or doubt, Partnership deed is the gui

    		•