Dissolutions situations
There are two situations that need to be considered under dissolutions. These are:-
1) Where the assets are sold at once (one single transaction)
2) Assets are sold on piece meal basis.
Under this situation, the partners are able to get a single buyer who buys al the assets in a single transaction. The buyer could be an individual, sole trader, another partnership or a company. this kind of situation is straightforward because the partners can be able to determine profit or loss on dissolution immediately.