Effect of Dissolution of Partnership Homework Help

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Certain consequences of dissolution

  • Enforce to wind up:

In case of dissolution of firm the partner is entitled to have the property realized and then apply the payment of debts. The surplus amount gets distributed among all other partners according to rights.

  • Share personal profits:

In effect of dissolution of partnership assignment help you will also get to know about the liability of dissolved firm. Personal profit cannot be made through transaction related to firm.

  • Return of payment:

The partner has to pay a premium while entering into partnership for any fixed term. The company gets dissolved before expiration of term.

The dissolution can occur in case of:

  • Death of partner.
  • Misconduct of partner.
  • By mutual agreement.

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Disposing a business in case of dissolution

In case of death of a partner or bankruptcy, the dissolution of partnership may take place. the other partner do not have to buy the share of outgoing partner as the partnership will get dissolved and the business needs to be sold.

It is suggested to sell to going concern and the partnership will be eligible to sell it on goodwill. Effect of dissolution of partnership assignment help will give knowledge about the process of sale of business:

  • Creditors of firm need to be paid in full. In case the money obtained from sale of assets is not sufficient enough to pay the debts of creditors, the partner need to balance it from private assets.
  • Partners can lent the money to firm which needs to be repaid with interest due along with outstanding loan amount.

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