--%>
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 Capital Budgets Capital Budgets

    Capital Budgets: The procedure of finding out which potential long-term projects are value undertaking, by comparing their estimated discounted cash flows with their internal rates of return. Capital Budget is the

    		•
  • Q : Explain Managerial Cost Accounting

    Managerial Cost Accounting System: The organization and processes, whether automated or not, and whether portion of the general ledger or stand-alone, which accumulates and reports constant and trustworthy cost information and perform

    		•
  • Q : Management accounting as an information

    Explain Management accounting as an information system in brief?

    		•
  • Q : Explain Responsibility Segment

    Responsibility Segment: A noteworthy organizational, functional, operational, or process component that has the characteristics as: (i) Its manager reports to the entity's top management;

  • 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 : Budget surplus Select the right answer

    Select the right answer of the question. If the economy has a standardized budget surplus, it means that: A) the public sector is exerting an expansionary impact on the economy. B) tax revenues would exceed government expenditures if full employment were achieved. C)

    		•
  • Q : Operation of business

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

    		•
  • Q : Benchmark test The process of testing a

    The process of testing a new software program using actual data and comparing the results to the alternative soft wares. The alternative can be new software or the organization's existing system. The test should be examined the software's accuracy and efficiency.

    		•
  • Q : Significance of partnership deed Why is

    Why is it significant to encompass a partnership deed in writing? Answer: Partnership deed is significant as it is a document stating relationship of each and every

    		•
  • Q : Assigning Support cost What are various

    What are various methods to assign support cost?

    		•