--%>
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 : Define Estimated Cost Estimated Cost :

    Estimated Cost: The procedure of projecting a future outcome in terms of cost, based on information accessible at the time. The estimated costs, instead of actual costs, are at times the basis for credits to work-in-process accounts a

    		•
  • Q : Things which Opportunities comprises

    Write a brief note on the things which Opportunities comprises?

    		•
  • Q : Techniques to liberate the function of

    Write down the different techniques employed to liberate the function of management accounting?

    		•
  • Q : Developing objectives and plans in

    Write down a short note on the developing objectives and plans in decision making process?

    		•
  • Q : Explain Activity-Based Costing

    Activity-Based Costing: It is a cost accounting process that measures the cost and performance of process related activities and cost objects. It assigns cost to cost objects, like products or customers, based on their utilization of

    		•
  • Q : What is Uncontrollable Cost What is

    What is Uncontrollable Cost: The cost over which an accountable manager has no persuade.

    		•
  • Q : Cash coverage of growth A financial

    A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities

    		•
  • Q : Break-even point The operating level at

    The operating level at which the total sales revenue equals the total cost. Total sale revenue is equal to the price per unit times the number of units sold. Total cost equals total variable cost, the number of units sold in time the variable cost per unit and the tot

    		•
  • Q : Define Partnership Accounting

    Partnership Accounting: A business can be a firm, a partnership, or a solitary proprietorship. The corporation is incorporated at state level. The sole proprietorship is one person in business. A partnership is two or more than two persons with an agr

    		•
  • Q : Working areas of the Finance department

    Write a short note on the main working areas of the Finance department?

    		•