--%>

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 : Provision of management accounting

    What do you mean by the term provision of management accounting information?

  • Q : Operation of business

    What are the main reasons that the operation of business environment has become ever more turbulent and competitive?

  • Q : What is Service What do you mean by

    What do you mean by Service: It is an intangible product or task rendered directly to a client or customer.

  • Q : Main users of the accounting information

    Briefly list out the main users of the accounting information which are related to the business?

  • Q : Influence of managers

    Write down a short note on the influence of manager’s behavior in management accounting information?

  • Q : Child tax credit A type of personal tax

    A type of personal tax credit that reduces the amount a taxpayer must pay. The child tax credit is $1,000 (in 2008) for each child meeting the criteria the child must be a U.S.  National, citizen, or resident under 17, a dependent of the taxpayer, and a grandchil

  • Q : Characteristics which accounting

    What are the key qualities or characteristics which accounting information should possess?

  • Q : What do you mean by the term SWOT

    What do you mean by the term SWOT analysis? Explain in brief?

  • Q : Acquisition entry on Balance Sheet 1.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1429896 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1955029
    Asked

    3,689

    Active Tutors

    1429896

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.